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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 69,200 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 Contribution Margin v Less Fixed Costs Net Income/(Loss) v Do you recommend implementation of the advertising program? Why or why not? The implementation of the advertising program is Save for Later as the net income would Attempts: 0 of 1 used Submit Answer Before Booth Company had the chance to implement usage of the new raw material, new industry specifications were announced and result in the following changes for the Booth Company. Variable costs will increase by 15% per unit and fixed costs will increase by $47,000. Management feels that a $3 per unit price increase is needed to accommodate the cost increases. However, this will result in a 10% decrease in units sold. Prepare a CVP income statement assuming these changes have been made. Booth Company CVP Income Statement For the Year Ended December 31, 2020 Sales Variable Costs Contribution Margin 1743840 1074330 3 669510 Less v Fixed Costs 538000 i Net Income/(Loss) 131510 Attempts: 1 of 1 used

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