Morton Company's contribution format income statement for last month is given below: Sales (44,000 unitsx $28 Variable expenses $1,232,000 862,400 per unit) Contribution margin Fixed expenses 369,600 295,680 Net operating income $ 73,920 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 $8.40 per unit. However, fixed expenses would increase to a total of $665,280 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.) Morton Company Contribution Income Statement Present Proposed Amount Per Unit Amount Per Unit $ 1,232,000 $ 100 % Sales Variable expenses Contribution margin Cost of goods sold Net operating income 28.00 1,232,000 $ 28.00 100 % $1,232,000