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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 $6.00 per unit. However, fixed expenses would increase to a total of $464,400 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 "Per Unit" to 2 decimal places.)

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Morton Company
Contribution Income Statement
	Present		Proposed
	Amount	Per Unit	Amount	Per Unit
Sales	$860,000	$20.00
Variable expenses	602,000
Contribution margin	258,000	$20.00	0	$0.00
Fixed expenses	206,400
Net operating income	$51,600		$64,800	14.4