College Team Calendars imprints calendars with college names. The company has fixed expenses of $ each month plus variable expenses of $ per carton of calendars. Of the variable expense, is cost of goods sold, while the remaining relates to variable operating expenses. The company sells each carton of calendars for $

Compute the number of cartons of calendars that College Team Calendars must sell each month to breakeven.

Begin by determining the basic income statement equation.

Sales revenue

Variable expenses

Fixed expenses

Operating income

Part

Using the basic income statement equation you determined above solve for the number of cartons to break even.

The breakeven sales is

cartons.