A new raw material is available that will decrease the variable costs per unit by $20\%($or $$2\mathrm{.}20).$ However, to process the new raw material, fixed operating costs will increase by $$47,900.$ Management feel that one half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a $10\%$ increase in the number of units sold.

Prepare a CVP income statement for $2022$: $($Round per unit cost to $2$ decimal places, eg$.15\mathrm{.}25.)$

$($a$)$ Assuming the changes have not been made:

CRANE COMPANY

CVP Income Statement $($Unchanged$)$

For the Year Ended December $31,2022$

Total

Per Unit

Variable costs

Contribution margin