Frieden Company's contribution format income statement for the most recent month is given below: Sales (46,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 920,000 644,000 276,000 220, 800 $ 55,200 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 is 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 $496,800 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. Present Proposed Per Unit Amount Per Unit Amount Percentage % Percentage % % % 0 $ 0 0 % 0 $ 0 0 % $ 0 $ 0 2. Refer to the income statements in Requirement (1) above. For both present operations and the proposed new operations, Compute: a. The degree of operating leverage. Present Proposed Degree of operating leverage b. The break-even point in dollars. Present Proposed Dollar sales to breakeven c. The margin of safety in both dollar and percentage terms. Present Proposed Margin of safety in dollars Margin of safety in percentage % %