I'm stuck

Frieden Company's contribution format income statement for last month is shown below: Sales (30,000 units) $1,080,000 Variable expanses 810, 000 Contribution margin 270, 000 Fixed expenses 243, 000 Operating income $ 2 'J' , 00 0 [ 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 xed expenses increasing by $270,000 per month. However, variable expenses would decrease by $9 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. 2. Refer to the income statements in requirement1 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. __I_I __I_I __l_l I_ll_ 3a. 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' 3-b. Based on the above analysis, should Frieden proceed with the major upgrade? 0 Yes 0 No 31:. Why or why not? In this oase,the indifference paint the wrreni level of sales alwhich poinl the upgarde have an impact on lhe operating income. So Frieden's proceed to upgrade. ma. Refer to the original data Instead of doing the major upgrade to the equipment, management is considering introducing a new advertising campaign that will increase xed expenses by $20,000 per month. Management believes the new advertisements will increase monthly unit sales by 10% In this case what would be imapact on operating income. :I:|