Frieden Company's contribution format income statement for the most recent month is given below : Sales ( 47,000 units ) Variable expenses Contribution margin Fixed expenses Net operating income $ 1,269,000 888,300 380,700304,560 $ 76,140 The industry in which Frieden Company operates is quite sensitive to cyclical movements in the economy . Thus , profits vary considerably from year to year according to general economic conditions . The company has a large amount of unused capacity and is studying ways of improving profits Required : 1. New equipment has come on the market that would allow Frieden Company to automate a portion of its operations . Variable expenses would be reduced by $ 8.10 per unit . However , fixed expenses would increase to a total of $ 685.260 each month Prepare two contribution format income statements : one showing present operations , and one showing how operations would appear if the new equipment were purchased . ( Input all amounts as positive values except losses which should be indicated by minus sign . Round your " Per unit " answers to 2 decimal places . ) Proposed Present Percentage Amount Per Unit Per Unit Percentage Amount %% Sales % % Variable expenses Contribution margin Fixed expenses Net operating income ( loss )