Exercise 19-05 (Video) Orale Company had sales in 2019 af $1,803,200 on 64,400 units. Variable...

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Exercise 19-05 (Video) Orale Company had sales in 2019 af $1,803,200 on 64,400 units. Variable costs totaled $1,159,200, and fixed costs totaled S478,000. A new raw material is available that will decrease the variable costs per unit by 20% (ar $3.60). However, ta process the new raw material, fixed operating costs will increase by $104,000. 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, assunting the changes have not been mede. ORIOLE COMPANY CVP Income Statement Total Per Unit (b) Prepare a projected CVP income statement for 2020, assuming the changes are made as described. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) ORIOLE COMPANY CVP Income Statement Total Per Unit

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