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

	Sales..................................	$60,000
	Variable expenses.............	45,000
	Contribution margin..........	15,000
	Fixed expenses..................	18,000
	Net operating loss..............	($3,000)

The company sells its only product for $10 per unit. There were no beginning or ending inventories.

Required:

1. What are total sales in dollars at the break-even point?
2. What are total variable expenses at the break-even point?
3. What is the company's contribution margin ratio?

d. If unit sales were increased by 10% and fixed expenses were reduced by

$2,000, what would be the companys expected net operating income?

(Prepare a new income statement)