Contribution Income Statement
Sales (16,000 units) ..	128,000
Variable expenses	80,000
Contribution Margin	48,000
Fixed expenses	12,000
Net Operating Income .	36,000

1. Jackpot company sells a single product, has provided its contribution format income statement for June.

Required:

1. Prepare Contribution Income Statement assuming that the business expects an increase in its total sales (as revenue) by 10% and decrease in variable cost per unit by $3. (2.5 marks)

2. Refer to the original data, how much is the total sales which the business needs to generate to earn a target profit of $60,000, verify your answer by preparing contribution income statement. (1.5 marks)

3. Refer to the original data and part b, calculate the percentage of increase in total profit. (1 mark)