Hello, I need help with 2 elements on this statement.

Sheridan Company had sales in 2020 of $1,845,000 on 73,800 units. Variable costs totaled $1,107,000 and fixed costs totaled $466,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.00). However, to process the new raw material, fixed operating costs will increase by $130,000. Management feels that two-thirds 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 4% increase in the number of units sold.Your answer is partially correct. Prepare a projected CVP income statement for 2020 assuming that changes are made as described. Sheridan Company CVP Income Statement For the Year Ended December 31, 2020 Sales 1765296 Variable Costs 921024 Contribution Margin 844272 Less Fixed Costs 59600 Net Income/(Loss) $ 784672Your answer is correct. Prepare a projected CVP income statement for 2020 assuming the changes have not been made. Sheridan Company CVP Income Statement For the Year Ended December 31, 2020 Sales 1845000 Variable Costs 1107000 Contribution Margin 738000 Less Fixed Costs 466000 Net Income/(Loss) $ 272000