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Contribution Income Statement Sales (12,000 units) ……………………….. 72,000 Variable expenses ……………………… 48,000 Contribution Margin ………………… 24,000...

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

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 (total revenue) by $3,000 and decrease in variable cost per unit by 10%.
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