Question
W 14 00:11:51 eBook Frieden Company's contribution format income statement for the most recent month is given below: Sales (43,000 units) Variable expenses Contribution margin
W 14 00:11:51 eBook Frieden Company's contribution format income statement for the most recent month is given below: Sales (43,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 989,000 692,300 296,700 237,360 $ 59,340 The industry in which Frieden Company operates is quite sensitive to cyclical movements in the economy. Thus, profits var considerably from year to year according to general economic conditions. The company has a large amount of unused cap 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. Varia expenses would be reduced by $6.90 per unit. However, fixed expenses would increase to a total of $534,060 each month two contribution format income statements: one showing present operations, and one showing how operations would appe new equipment were purchased. (Input all amounts as positive values except losses which should be indicated by minus Round your "Per unit" answers to 2 decimal places.) $ Amount 0 $ 0 Present Per Unit 0.00 Percentage % % 0% $ Amount Proposed Per Unit 0 $ 0 0.00 Percenta 0
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