91%, 14.98 ol P7-63A (similar to) Question Help - Great Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,065,000 each month plus variable expenses of $3.50 per carton of calendars. Of the variable expense, 72% is cost of goods sold, while the remaining 28% relates to variable operating expenses. The company sells each carton of calendars for $13.50 Read the requirements Sales revenue Requirement 1. Compute the number of cartons of calendars that Great Spirit Calendars must sell each month to breakeven. Begin by determining the basic income statement equation Variable expenses Fred expenses Operating income Using the basic income statement equation you determined above solve for the number of cartons to break even The breakeven sales is 106,500 cartons Requirement 2. Compute the dollar amount of monthly sales Great Spirit Calendars needs in order to earn $304,000 in operating income Score: 0.46 of 3 pts 9 of 9 (9 complete) HW Score: 74.91%, 1- % P7-63A (similar to) Questi Great Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,065,000 each month plus variable expenses of s: of calendars. Of the variable expense, 72% is cost of goods sold, while the remaining 28% relates to variable operating expenses. The company sells e calendars for $13.50 Read the requirements Begin by determining the formula Fixed expenses Target operating income ) Contribution margin ratio = Target sales in dollars (Round the contribution margin ratio to two decimal places.) The monthly sales needed to earn $304,000 in operating income is $ 1,850,000 Requirement 3. Prepare the company's contribution margin income statement for June for sales of 470,000 cartons of calendars. Great Spirit Contribution Margin Income Statement Month Ended June 30 + Choose from any list or enter any number in the input fields and then click Check Answer parts remaining Clear All Check Answ Operating income of $252, 280 is computed by deducting variable cost and fixed cost search o Save Homework: Chapter 7 Homework ore: 0.46 of 3 pts 9 of 9 (9 complete) HW Score: 74.91%, 14.98 of 20 pts 3 P7-63A (similar to) Question Help reat Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,065,000 each month plus variable expenses of $3.50 per carton calendars. Of the variable expense, 72% is cost of goods sold, while the remaining 28% relates to variable operating expenses. The company sells each carton of alendars for $13.50 ead the requirements Requirements Great Spirit Contribution Margin Income Statement Month Ended June 30 Sales revenue Variable expenses Cost of goods sold Contribution margin Operating expenses 1. Compute the number of cartons of calendars that Great Spirit Calendars must sell each month to break even 2. Compute the dollar amount of monthly sales that the company needs in order to earn $304,000 in operating income (round the contribution margin ratio to two decimal places) 3. Prepare the company's contribution margin income statement for June for sales of 470,000 cartons of calendars. 4. What is June's margin of safety (in dollars)? What is the operating leverage factor at this level of sales? 5. By what percentage will operating income change if July's sales volume is 11% higher? Prove your answer moose from any list or enter any number in the input fields and then Print Done parts remaining Operating income of 252,28 is computed by deducting variable cost and fixed cost RI o
