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 $432,000 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. show an amount column, a per unit column, and a percent column on each statement. do not show percentages for the fixed expenses.

Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be: