Current Attempt in Progress Cullumber Company had sales in 2021 of $1,920,000 on 60,000 units. Variable costs totaled $1,152,000, and fixed costs totaled $640,000. A new raw material is available that will decrease the unit variable costs by 20% (or $3.84). However, to process the new raw material, fixed operating costs will increase by $128,000. Management feels that one half of the decline in the unit variable costs 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 2022, assuming the changes have not been made. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to O decimal places, e.g. 1,225.) CULLUMBER COMPANY CVP Income Statement $ Total CULLUMBER COMPANY CVP Income Statement $ (b) Prepare a projected CVP income statement for 2022, 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.) $ $ Total S Per Unit S Per Unit
Current Attempt in Progress Cullumber Company had sales in 2021 of $1,920,000 on 60,000 units. Variable costs totaled $1,152,000, and fixed costs totaled $640,000. A new raw material is available that will decrease the unit variable costs by 20% (or $3.84). However, to process the new raw material, fixed operating costs will increase by $128,000. Management feels that one half of the decline in the unit variable costs 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 2022, assuming the changes have not been made. (Round per unit cost to 2 decimal places, e.g. 5.25 and all other answers to O decimal places, e.g. 1,225.) CULLUMBER COMPANY CVP Income Statement $ Total CULLUMBER COMPANY CVP Income Statement $ (b) Prepare a projected CVP income statement for 2022, 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.) $ $ Total S Per Unit S Per Unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kk.98.
Transcribed Image Text:Current Attempt in Progress
Cullumber Company had sales in 2021 of $1,920,000 on 60,000 units. Variable costs totaled $1,152,000, and fixed costs totaled
$640,000.
A new raw material is available that will decrease the unit variable costs by 20% (or $3.84). However, to process the new raw material.
fixed operating costs will increase by $128,000. Management feels that one half of the decline in the unit variable costs 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 2022, assuming the changes have not been made. (Round per unit cost to 2 decimal
places, e.g. 5.25 and all other answers to O decimal places, e.g. 1,225.)
CULLUMBER COMPANY
CVP Income Statement
$
Total
CULLUMBER COMPANY
CVP Income Statement
$
$
(b) Prepare a projected CVP income statement for 2022, assuming that changes are made as described. (Round per unit cost to 2 decimal
places, e.g. 5.25 and all other answers to O decimal places, e.g. 1,225.)
S
Total
$
$
Per Unit
$
Per Unit
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