Check mi Erin Shelton, Inc. wants to earn a target profit of $850,000 this year. The company's fixed costs are expected to be $1,100,000 and its variable costs are expected to be 60 percent of sales, Erin Shelton, Inc., earned $750,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Inc. 2. Prepare a contribution margin income statement on the basis break-even sales. 3. Calculate the required sales to meet the target profit of $850,000 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $850,000 5. When the company corns $850,000 of net income, what is its margin of safety and margin of safety os o percentage of sales? Calculate break-even sales for Erin Shelton, Inc. Emak Evans Required 2 > Prepare a conubu gin income statement on the basis of break-even sales, Contribution Margin Income Statement Contribution Margin Profin Calculate the required sales to meet the target profit of $850,000. Target Sales ook Prepare a contribution margin income statement based on sales required to earn a target profit of $850,000. Contribution Margin Income Statement Print arences Contribution Margin Profit When the company earns $850,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? (Round your "Percentage Sales' answer to 2 decimal places. (1.e. 1234 should be entered as 12.34%.)) Margin of Safety Margin of Safety as a Percentage of Sales %