Contribution format income statement for the most recent month is Sales ( 40000 units) is $800000 Variable expenses are 560000 contribution margin is 240000 fixed expenses 192000 and net operating income 48000. 1) new equipment is coming so variable expenses will reduce by $6 per unit, however fixed expenses would increase to a total of $432000 ea month. prepare two contribution format income statements, one showing present operations and one showing how operations would be with the new equipment causes the changes. Show amt column, per unit column, and percent column. 2) on the above figures for both present and proposed compute a degree of operating leverage, the break even point in dollars and margin of safety in both dollars and percentage terms.3) which of these figures would be paramount in deciding whether to get the new equipment? 4) refer to the original data and instead of new quipment the marketing manager wants to make a new approach that would ncrease sales 50% without any change in sellingprice the companys new fixed expenses would be $240000 and its net operating income would increase by 25%. Compute the break even point in dollar sales under the new plan. Do you agree with this new plan?