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Current Attempt in Progress Sunland Company had sales in 2022 of $1,533,600 on 56,800...

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Accounting

Current Attempt in Progress
Sunland Company had sales in 2022 of $1,533,600 on 56,800 units. Variable costs totalled $568,000, and fixed costs totalled $838,900.
A new raw material is available that will decrease the variable costs per unit by 20%(or $2.00). However, to process the new raw material, fixed operating costs will increase by $35,000. 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, e.g.15.25.)
(a) Assuming the changes have not been made:
SUNLAND COMPANY
(b) Assuming that changes are made as described.
\table[[SUNLAND COMPANY,],[CVP Income Statement (with changes),],[$1,Total]]
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