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Volmar Company had sales in 2020 of...

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Accounting

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Volmar Company had sales in 2020 of $1,447,600 on 51,700 units. Variable costs totalled $568,700, and fixed costs totalled $742,900. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.20). However, to process the new raw material, fixed operating costs will indsease by $39,100. 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 10% increase in the number of units sold. Prepare a CVP income statement for 2020: (Round per unit cost to 2 decimal places, eg. 15.25.) Question 9 of 9 (a) Assuming the changes have not been made: VOLMAR COMPANY CVP Income Statement (Unchanged) Total Per Unit $

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