Refer to the original data. By automating, the company could reduce variable expenses by $$3$ per unit. However, fixed expenses would increase by $$52,000$ each month. Assume the company expects to sell $20,700$ units next month. Prepare two contribution format income statements, one assuming operations are not automated and one assuming they are. $($Show data on a per$-$unit and percentage basis, as well as in total, for each alternative.$)$

Note: Do not round your intermediate calculations. Round your percentage answers to the nearest whole number.

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PEM, Incorporated

Contribution Income Statement

Not Automated Automated

Total Per Unit $\%$ Total Per Unit $\%$

Sales $$414,000$ $$20$ $$414,000$ $$20$

Variable expenses $207,00010144,9007$

Contribution margin $207,000$ $$100269,100$ $$130$

Fixed expenses $144,000196,000$

Net operating income $$63,000$ $$73,100$