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Carey Company had sales in 2019 of $1,727,600

Carey Company had sales in 2019 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.


Prepare a projected CVP income statement for 2020, assuming that changes are made as described

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