Morton Company's contribution format income statement for last month is given below $22 per unit) Sales (44,000 units Variable expenses $968,000 677,600 Contribution margin Fixed expenses 290,400 232,320 Net operating income 58,080 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary 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 onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $6.60 per unit. However, fixed expenses would increase to a total of $522,720 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. (Round your "Per unit" answers to 2 decimal places.) Contribution Income Statement Per Unit Per Unit 22.00 15.14 6.86 100% $ Sales Variable expenses Contribution margin Fixed expenses Net operating income 968,000S 677,600 290.400 S 232.320 58.080 968,000 S 387,200 580,800 S 522.720 58,080 22.00 8.80 13.20 100 % 40% 60% 70% 30%