Sales (59,880 units) Variable expenses Contribution margin Fixed expenses Net operating income $1,180,000 826,000 354,000 283,200 $ 70,800 The Industry in which Frieden 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 studying ways of improving profits. Required: 1. New equipment has come on the market that would allow Frieden Company to automate a portion of its operations. Variable expenses would be reduced by $6 per unit. However, fixed expenses would increase to a total of $637200 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment were purchased. 5 Present Per Unit Proposed Per Unit Amount Percentage Amount Percentage 96 3. If a truck were driven 83.000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations. Round "Total annual cost" to 2 decimal places.) Total annual cos