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

Contribution Income Statement
Sales (12,000 units) .	$72,000
Variable expenses	48,000
Contribution Margin	24,000
Fixed expenses	10,000
Net Operating Income .	14,000

Required:

1. Prepare Contribution Income Statement assuming that the business expects an increase in its total sales (total revenue) by $3,000 and decrease in variable cost per unit by 10%. (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)

4. Refer to the original data, calculate break-even point in units. (1 mark)