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Business, 14.11.2019 06:31 KP1998

Carey company had sales in 2016 of $1,716,000 on 66,000 units. variable costs totaled $1,188,000, and fixed costs totaled $473,000. 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, fixed operating costs will increase by $100,000. 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 the 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.

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Carey company had sales in 2016 of $1,716,000 on 66,000 units. variable costs totaled $1,188,000, an...
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