Spencer Company's most recent monthly contribution format income statement is given below:

Sales	$160,000
Less: variable expenses	100,000
Contribution margin	60,000
Less: fixed expenses	63,000
Operating income	(3,000)

The company sells its only product for $10 per unit. There were no beginning or ending inventories. Required: a) What is the company's contribution margin ratio? b) What are total sales in dollars at the break-even point? c) What are total variable expenses at the break-even point? d) If unit sales were increased by 10% and fixed expenses were reduced by $2,000, what would be the company's expected operating income? (Prepare a new income statement.)