1) The Jonco Company is considering adding a new product to their line of kitchen gadgets. Jon has budgeted $70,000 for a marketing campaign. Jon anticipates a distribution cost of $5.00 on each unit. Jonco can obtain quantity discounts on the cost of the Dice-O-Matic as follows: COGS Quantity Cost 1-1499 82.50 1500-1999 81.00 2000-2499 78.00 2500-2999 75.75 3000-3499 72.50 >= 3500 70.00 If he adds the product to his line, Jon projects an increase in his payroll expense of $42,000 and an increase in overhead of $18,000. Joncos previous experience with similar products and promotion programs is reflected by the following price/ demand data. Price Demand 109.95 3250 119.95 3100 129.95 3000 139.95 2800 149.95 2650 159.95 2500 169.95 2000 1a) Jon has asked you to prepare a pro-forma contribution income statement showing his marginal operating income (EBIT) if he adds the dice-o-matic. Use the format of the following pro-forma statement. Build a spreadsheet model with an appropriate assumptions area and show sensitivity analyses to answer the following question