Frieden Company's contribution formet income statement for the most recent month is given below: Sales (41.200 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 328,888 615.ee 205,000 164.ee $ 41,000 The industry in which Frieden Company operates is quite sensitive to cyclical movements in the economy. Thus, profits very 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 sutomate a portion of its operations. Verisble expenses would be reduced by $5 per unit. However, fixed expenses would increase to a total of S369,000 each month. Prepare two contribution formst income statements, one showing present operations and one showing how operations would appear if the new equipment were purchased. Present Per Unit Proposed Per Unit Amount Amount Percentage % Percentage 156 5 0 % % 0 S 0 01% 0 S 0 S 0 S 0 2 Refer to the income statements in Requirement (1) above. For both present operations and the proposed new operations, Compute: a. The degree of operating leverage. Present Proposed Degree of operating average b. The break-even point in dollars. Present Proposed Dallar sales to breakeven C. The margin of safety in both dollar and percentage terms. Present Proposed Margin of safety in dollars Margin of safety in percentage %