Frieden Company's contribution format income statement for last month is shown below: Sales [43,000 units] $l,?5, Variable expenses 645,000 Contribution margin 430,000 Fixed expenses 38?,000 Operating income 3 43,000 Competition is intense. and Frieden Company's prots vary considerably from one year to the next. Management is exploring opportunities to increase protability. Required: 1. Frieden's management is considering a major upgrade to the manufacturing equipment, which would result In fixed expenses increasing by $430,000 per month. However. variable expenses would decrease by $10 per unit. Selling price would not change. Prepare two contribution format Income statements, one showing current operations and one showing howr operations would appear if the upgrade is completed. Show an Amount oolumn. a Per Unit column. and a Percentage column on each statement. 2. Refer to the income statements in requirement 1 above. For both current operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollars, and (c) the margin of safety in both dollar and percentage terms. Present Proposed a. Degree of operating leverage b Break-even point in dollars C Margin of safety in dollars Margin of safety in percentage %% 3-a. Calculate the unit sales per month at which Frieden management will be indifferent between doing the major upgrade to the manufacturing equipment and not doing the upgrade. Unit sales per month