How to calculate it

Proctoring Enabled: MH Lab 2: Cost-Volume-Profit i Saved Frieden Company's contribution format income statement for the most recent month is given below: 14 ( sIun 000'9t ) sates $1, 334, 000 Variable expenses 933 , 800 Contribution margin 400, 200 Fixed expenses 320, 160 800:22:22 Net operating income $ 80, 040 The industry in which Frieden Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary Book considerably from year to year according to general economic conditions. The company has a large amount of unused capacity ar 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 $8.70 per unit. However, fixed expenses would increase to a total of $720,360 each month. Prepar 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.) Present Proposed Amount Per Unit Percentage Amount Per Unit Percentage Sales % % Variable expenses % % Contribution margin o s 0 00 o $ 0.00 0 % Fixed expenses Net operating income (loss) $ + 0 $ raw Hill