Colege Rock Calendars imprints calendars with college nanes. The company has fixed expenses of $1.005.000 each month plus variable expenses of $6.50 per carton of calanders of the variable expense, 68% is cost of goods sold while remaining 325 relates to variable operating expenses. The company sets each carton of calendars for $16.50 Readers Requirement 1. Compute the number of cartons of calendars that College Rock Calendars muselach month to traves. Begin by determining the base come mantequation Operating income Using the basic room walement union you determined above ove for the number of cartons to break even Caron Requirement 2 Camote the di amount of monthly College Rock Calendars needs horor to earn $308,08 in operating income Degin by determining the tomu - Targets in care Round the contribution marginal to two decimal places The monthly sales needed to earn $30.000 in operating home is Reglement 3. Prepare the company's corbulon margin income to use for sales of 400.000 carora ledere College Ro Contribution Margin income Statement Moth Ende June Choose from any or enter a numberinginous and then con to the next question Colege Rock Calendars merits calendars with colege names. The company has twed expenses of $1.095.000 each month us will expenses of S650 per carton of condars of the variable persoas cost of goods we the remaring 32% eles to variable operating expenses. The company sells each carton of calendars for $16.50 Road the recents Requirement 3. Prepare the company's contribution margin income statement for Jure for sale of 400.000 cartoe of calendars. College Rock Contrution Margie Income Statement Morth Ended June 30 Requirement. What is jund's margin of sale in what is the operating wage factor at this love of tegin by Gelming the tomu The main of What is the verge factor is vol of Bagn by determining the forma College Rock Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of cale remaining 32% relates to variable operating expenses. The company sells each carton of calendars for $16.50 Road the requirements Requirement 4. What is June's margin of safety (in dollars)? What is the operating leverage factor at this level of sales? Begin by determining the formula. Margin of safety in dollars) The margin of safety is What is the operating leverage factor at this level of sales? Begin by determining the formula, Operating leverage factor (Round the operating leverage factor to three decimal places.) The operating leverage factor is Requirement 5. By what percentage wil operating income change if July's sales volume is 15% higher? Prove your answer (Round the percentage to two decimal places) if volume increases 15%, then operating income will increase Prove your answer. (Round the percentage to two decimal places) Original volume (cartons) Add: Increase in volume New volume (cartons) Multiplied by Unit contribution margin College Rock Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton remaining 32% relates to variable operating expenses. The company sells each carton of calendars for $16.50. Read the requirements - Operating leverage factor (Round the operating leverage factor to three decimal places.) The operating leverage factor is Requirement 5. By what percentage will operating income change if July's sales volume is 15% higher? Prove your answer. (Round the percentage to two decimal places. If volume increases 15%, then operating income will increase Prove your answer. (Round the percentage to two decimal places.) Original volume (cartons) Add: Increase in volume New volume (cartons) Multiplied by: Unit contribution margin New total contribution margin Less: Fixed expenses Now operating income vs. Operating income before change in volume Increase in operating income Percentage change
