Frieden Company's contribution format income statement for last month is shown below: Sped Sales (30,000 units) Variable expenses Contribution margin Fixed expenses Operating income $1,200,000 900,000 300,000 240,000 S 60,000 Oox Competition is intense, and Frieden Company's profits vary considerably from one year to the next Management is exploring opportunities to increase profitability, Required: 1. Frieden's management is considering a major upgrade to the manufacturing equipment, which would result in fixed expenses increasing by $300,000 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 how operations would appear if the upgrade is completed. Show an Amount column, a Per Unit column, and a Percentage column on each statement FRIEDEN COMPANY Contribution Margin Income Statement Present Proposed profitability dly considerably from one year to the next Management is exong Required: 1. Frieden's management is considering a major upgrade to the manufacturing equipment which would result in fed experien increasing by $300,000 per month. However, variable expenses would decrease by $10 per unit Selling price would not change Prepare two contribution format income statements, one showing current operations and one showing how operations would not the upgrade is completed. Show an Amount column, a Per Unit column, and a Percentage column on each statement FRIEDEN COMPANY Contribution Margin Income Statement Present Amount Per Unit % Proposed Per Unit Amount 0$ 0 0 05 0 0 5 $ Ints Skipped 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. eBook Present Proposed Ask a Print b Degree of operating leverage Break-even point in dollars 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 DENG 5C Cloudy Mc raw