Question: Please only help and answer the one that's wrong and missing. No need to do 3-a and 3-b. They are both correct and done, will







Please only help and answer the one that's wrong and missing. No need to do 3-a and 3-b. They are both correct and done, will rate up when answer is correct. Thank You
Frieden Company's contribution format income statement for last month is shown below: Sales (30,000 units) Variable expenses $1,050,000 630,000 Contribution margin Fixed expenses 420,000 378,000 Operating income $ 42,000 Competition is intense, and Frieden Company's profits vary considerably from one year to the next. Management is exploring opportunities to increase profitability. Required: 1. Frieden's management is considering a major upgrade to the manufacturing equipment, which would result in fixed expenses increasing by $420,000 per month. However, variable expenses would decrease by $14 per unit. Selling price would not change. Prepare two contribution format income statements, one showing current operations and one showing how operations would appear if the upgrade is completed. Show an Amount column, a Per Unit column, and a Percentage column on each statement. X Answer is not complete. FRIEDEN COMPANY Contribution Margin Income Statement Present Proposed Per Unit % Amount Per Unit % Sales $ 35 $ 1,050,000 $ 35 Amount $ 1,050,000 630,000 420,000 21 1 X 7 0 X $ 14 (1) $ 28 0 Variable expenses Contribution margin Fixed expenses Operating income 210,000 840,000 798,000 42,000 378,000 $ 42,000 $ 3-c. Why or why not? In this case, the indifference point of sales at which point the upgarde the operating income. So Frieden's the current level have an impact on d to upgrade equals greater than less than 3-c. Why or why not? In this casethe indifference point of sales at which point the upgarde the operating income. So Frieden's the current level have an impact on proceed to upgrade will will not 3-c. Why or why not? In this case, the indifference point of sales at which point the upgarde the operating income. So Frieden's the current level have an impact on proceed to upgrade. should should not 3-a. Calculate the unit sales per month at which Frieden management will be indifferent between doing the major upgrade to the manufacturing equipment and not doing the upgrade. Unit sales 30,000 per month 3-b. Based on the above analysis, should Frieden proceed with the major upgrade? Yes No 3-c. Why or why not? In this case, the indifference point of sales at which point the upgarde the operating income. So Frieden's the current level have an impact on proceed to upgrade. 4-a. Refer to the original data. Instead of doing the major upgrade to the equipment, management is considering introducing a new advertising campaign that will increase fixed expenses by $50,000 per month. Management believes the new advertisements will increase monthly unit sales by 20%. In this case what would be imapact on operating income. Operating income increase by decrease by
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