Question 1 (of t) value: 60.00 points Morton Company's contribution format income statement for last month is given below: Sales (50,000 units x $28 per unit)1,400,000 Variable expenses 980,000 Contribution margin Fixed expenses 420,000 336,000 Net operating income $ 84,000 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 S increase to a total of $756,000 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment i purchased (Round your "Per unit" answers to 2 decimal places.) Morton Company Contribution Income Statement