managerial accounting

Project Description:

hall company had sales in 2014 of $1,560,000 on 60,000 units. variable costs totaled $720,000, and fi xed costs totaled $500,000.a new raw material is available that will decrease the variable costs per unit by 25% (or $3.00). however, to process the new raw material, fixe operating costs will increase by $150,000. management feels that one-half of the decline in the variable costs per unit should bepassed on to customers in the form of a sales price reduction. the marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.instructionsprepare a projected cvp income statement for 2014 (a) assuming the changes have not been made, and (b) assuming that changes are made as described
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