Boothe Company has sales of $1,690,000 on 67,600 units. Variable cost of $1,014,000 and fixed costs totaled $549,000. Before Booth Company had the chance to implement usage of the new raw material, new industry specifications were announced and result in the following changes for Booth Company. Variable Costs will increase by 15% per unit and fixed costs will increase by $48,000. Management feel that $3 per unit price increase is needed to accommodate the cost increases. However, this will result in a 10% decrease in unit sold. Prepare a CVP Income Statement assuming these changes have been made.

The CVP Income Statement for Boothe Company is as follows:Boothe CompanyCVP Income Statements                                        Before         After ChangesSales Revenue         $1,690,000          $1,703,520Variable Cost            $1,014,000          $1,049,490Contribution margin  $676,000            $654,030Fixed Costs               $549,000            $597,000Net income               $127,000               $57,030What is CVP analysis?CVP analysis is an accounting technique to discover how changes in variable and fixed costs impact the company's profits.Cost Volume Profit analysis shows the break-even point in units and dollars, reflecting the sales units and dollars required to ensure that all costs are recovered.                                      Before           After ChangesSales Revenue       $1,690,000       $1,703,520 ($28 x 60,840)Units sold                      67,600              60,840 (67,600 x 1 - 10%)Selling price                       $25                   $28 ($25 + $3)Variable Cost          $1,014,000       $1,049,490 (60,840 x $17.25)Variable cost per unit         $15               $17.25 ($15 x 1 + 15%)Fixed costs              $549,000          $597,000 ($549,000 + $48,000)Thus, using the CVP analysis, the industrial changes will reduce Boothe Company's net income by $70,000.Learn more about the CVP analysis at https://brainly.com/question/26654564#SPJ1