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Frieden Company's contribution format income statement for the most recent month is given below: Sales (40,000 units) $1, 040, 090 Variable expenses 728, 090 Contribution margin 312, 090 Fixed expenses 249, 600 Net operating income 62, 400 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 $7.80 per unit. However, fixed expenses would increase to a total of $561,600 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. (Input all amounts as positive values except losses which should be indicated by minus sign. Round your "Per unit" answers to 2 decimal places.) Present Proposed Amount Per Unit Percentage Amount Per Unit Percentage Sales x X X * % Variable expenses Contribution margin 0 $ 0.00 0 $ 0.00 % Fixed expenses X x Net operating income (loss) *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 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