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Exercise 19-5 Carey Company had sales in 2016 of $1,727,600 on 61,700 units. Variable costs...

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Accounting

Exercise 19-5 Carey Company had sales in 2016 of $1,727,600 on 61,700 units. Variable costs totaled $987,200, and fixed costs totaled $456,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.20). However, to process the new raw material, fixed operating costs will increase by $101,000. 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 2017, assuming the changes have not been made. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ $ (b) Prepare a projected CVP income statement for 2017, assuming that 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.) CAREY COMPANY CVP Income Statement Total Per Unit $ $ $ $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT

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