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 $3 but will increase fixed costs by 20%.

MARKHAM FARMS
Contribution Margin Income Statement
Sales (1,400 Units @ $75 per unit)	$105,000
Variable Costs (1,400 Units @ $10 per Unit)	14,000
Contribution Margin	$91,000
Fixed Cost	40,000
Net Income (Loss)	$51,000

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

MARKHAM FARMS
Contribution Margin Income Statement
Sales	$
Variable Costs
Contribution Margin	$
Fixed Cost
Net Income (Loss)	$