Question 3 (of 5) 3. value: 2.00 points Morton Company's contribution format income statement for last month is given bel Sales (48,000 units x Variable expenses $21 per unit) $1,008,000 705,600 Contribution margin Fixed expenses 302,400 241,920 Net operating income 60,480 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 $6.30 per unit. However, fixed expenses would increase to a total of $544,320 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