prepare a CVP income statement for $2022,$ assuming the changes were made

Sunland Company had sales in 2021 of $1,740,000 on 60,000 units. Variable costs totaled $1,044,000, and fixed costs totaled $580,000. A new raw material is available that will decrease the unit variable costs by 20% (or $3.48). However, to process the new raw material, fixed operating costs will increase by $116,000. Management feels that one half of the decline in the unit variable costs 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.