Carey Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and...

 

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Carey Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and fixed costs totaled $508,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ %24 %24 %24 > > > > (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit 2$ %24 %24 %24 > > > > > Carey Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and fixed costs totaled $508,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ %24 %24 %24 > > > > (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit 2$ %24 %24 %24 > > > > > Carey Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and fixed costs totaled $508,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ %24 %24 %24 > > > > (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit 2$ %24 %24 %24 > > > > > Carey Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and fixed costs totaled $508,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ %24 %24 %24 > > > > (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit 2$ %24 %24 %24 > > > > > Carey Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and fixed costs totaled $508,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ %24 %24 %24 > > > > (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit 2$ %24 %24 %24 > > > > > Carey Company had sales in 2019 of $1,806,000 on 64,500 units. Variable costs totaled $1,032,000, and fixed costs totaled $508,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $107,000. Management feels 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 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ %24 %24 %24 > > > > (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described. places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit 2$ %24 %24 %24 > > > > >

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Ans a CVP Income statement assuming no changes have been made C... View the full answer