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iPad 10:04 PM 92% edugen.wileypius.com WileyPLUS WileyPLUS Place your order RuPaul's Drag R.. spotify student.. WIIcyrLOKimmel, Accounting, 6e Home Read, Study & Practice cpb-us-west-2... Gradebo ORION Downloadable eTextbook Chapter 19 Homewerk Assignment a Exercise 19-2 Exercise 19-5 Carey Company had sales in 2016 of $1,803,200 on 64,400 units. Variable costs totaled $1,159,200, and fixed costs totaled $478,000. A new raw material is available that will decrease the variable costs per unit by 20% (or 3.60). However, to process the new raw material, fxed operating costs will lincrease 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 S% increase in the number of units sold. Review 5core (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) Review Resuls by Studyc Objective Per Unit (b) Prepare a projected CVP income statement for 2017, assuming that changes are made as described (Round er unit cost to 2 decimal places, e.g.5.25 and all other answers to 0 decimal places, e.g. 1,225.) Per Unit Question Attempts: 0 of 3 used sAVE FOR LATER

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Req A: CVP INCOME STATEMENT TOTAL PER UNIT Sales revenue 1803200 28 Less: variable cost 1159200 18 Contribution margin 644000 10 Less: Fixed cost 478000 Net Operating income 166000 Req A: CVP INCOME STATEMENT TOTAL PER UNIT Sales revenue (64400 units +5%) 1771644 26.2 Less: variable cost 973728 14.4 Contribution margin 797916 11.8 Less: Fixed cost (478000+104000) 582000 Net Operating income 215916

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