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Business, 24.04.2020 18:11 maxB0846

Swifty Company had sales in 2019 of $1,803,200 on 64,400 units. Variable costs totaled $901,600, and fixed costs totaled $478,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $108,000. 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. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. SWIFTY COMPANY CVP Income Statement Total Per Unit $ $ $ $ (b) Prepare a projected CVP income statement for 2020, 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.) SWIFTY COMPANY CVP Income Statement Total Per Unit $ $ $ $

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Swifty Company had sales in 2019 of $1,803,200 on 64,400 units. Variable costs totaled $901,600, and...
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