Morton Company's contribution format income statement for last month is given below: Sales (46,000 units x $25 per unit) $ 1,150,000 Variable expenses Contribution margin Fixed expenses Net operating income 805,000 345,000 276,000 69,000 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 $7.50 per unit. However, fixed expenses would increase to a total of $621,000 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. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 $7.50 per unit. However, fixed expenses would increase to a total of $621,000 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 "Per Unit" to 2 decimal places.) Show less Morton Company Contribution Income Statement Present Amount Per Unit % Amount Proposed Per Unit % % % % % 0 $ 0.00 0% 0 $ 0.00 0% 0 $ 0