Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 10%.

MARKHAM FARMS

Contribution Margin Income Statement

Sales (1,500 Units @ $80 per unit) $120,000

Variable Costs (1,500 Units @ $15 per Unit) 22,500

Contribution Margin $97,500

Fixed Cost 50,000

Net Income (Loss) $47,500

Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.

Sales=

Variable cost=

Contribution margain=

Fixed cost=

Net income(loss)=