Current Attempt in Progress
Sunland Company had sales in of $ on units. Variable costs totalled $ and fixed costs totalled $
A new raw material is available that will decrease the variable costs per unit by or $ However, to process the new raw material, fixed operating costs will increase by $ Management feel 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 increase in the number of units sold.
Prepare a CVP income statement for : Round per unit cost to decimal places, eg
a Assuming the changes have not been made:
SUNLAND COMPANY
b Assuming that changes are made as described.
tableSUNLAND COMPANY,CVP Income Statement with changes$Total
