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Please help on question 4. Thank you value 0.00 points Morton Company's contribution format income statement for last month is given below: Sales (45,000 units
Please help on question 4. Thank you
value 0.00 points Morton Company's contribution format income statement for last month is given below: Sales (45,000 units $22 per unit) Variable expenses Contribution margin Fixed expenses Net operating income $ 990,000 693,000 297,000 237,600 $ 59,400 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 $534,600 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 990,000 693,000 297,000 $ 237,600 59,400 Sales 100196 $ 990.000 $ 100 22.00 15.40 6.60 22.00 8.80 13.20 40196 ariable expenses Contribution margin 701 % 396,000 594,000$ 534,600 301 % 601% xed expenses et operating income 59,400
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