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Booth Company had sales in 2020 of $1.810,000 on 72,400 units. Variable c $493,000 osts...

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Accounting

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Booth Company had sales in 2020 of $1.810,000 on 72,400 units. Variable c $493,000 osts totaled $1,08 6,000 and fixed costs totaled 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. The marketing department suggests implementing an advertising promotion that would increase variable costs by $0.50 per unit but would retain the original sales volume of 72,400 units. Prepare a CPV income statement with these changes. Use the information in part (b) to complete this section. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales Variable Costs Less : Fixed Costs

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