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Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase xed costs by 20%. MARKHAM FARMS Contribution Margin Income Statement Sales (1,500 Units @ $75 per unit) $112,500 Variable Costs (1,500 Units @ $20 per Unit) 30'000 Contribution Margin $82,500 Fixed Cost 50,000 Net Income (Loss) $32,500 Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged. MARKHAM FARMS Contribution Margin Income Statement Sales ./ $C] Variable Costs ./ [:] Contribution Margin ,/ $C] Fixed Cost J C] Net Income (Loss) q E