Sheridan Company had sales in 2021 of $1,710,000 on 60,000 units. Variable costs totaled $1,026,000, and fixed costs tot

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Sheridan Company had sales in 2021 of $1,710,000 on 60,000
units. Variable costs totaled $1,026,000, and fixed costs totaled
$570,000. A new raw material is available that will decrease the
unit variable costs by 20% (or $3.42). However, to process the new
raw material, fixed operating costs will increase by $114,000.
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 0 decimal places, e.g.
1,225.)
B) Prepare a projected CVP income statement for 2022, assuming
that changes are made as described