College Try Calendars peints calendars with collegames. The company has feed expenses of 1,096.000 each monthpus variable expenses of 5400 per carton of calendars of the variable expense 715 is cost of goods sold, while the remaining 27% olates to variabile operating expenses. The company sells each carton of calendars for $12.00 Read the recent Requirement 1. Compute the number of cartom of calendars that College Try Calendars must be each month to breakeven. Begin by determining the basic income statement equation Sales were Variable expen Fedex Operating income Using the basic income statement equation you determined above solve for the number of carton to break even The breaksie 136.75 carton Requirement 2. Comuto the dollar amount of monthly sales College Toy Calendars needs in order to eam 5312.000 in operating income Begin by doining the formula Fred pencere Contribution margin ratio Torget indoles Round the contributon margin ratio toto decimal aces The monthly salesmentado com 5312,000 in operating comes 2.100.000 Requirement 3. Prepare the company's contribution margin income statement to June for anders of 455,000 cartons of calendar College Try Contribution Margin Income Statement Month Ended June 30 327800 Varios Cost of goods sold Oporting expenses 1.120.000 Contribution margin 3.640.000 penses Operating income 12.545.000 Requirement 4, What is Sna's margin of salety (m dolor? What is the operating leverage factor at this level of nie? Begin by determining the forma Salervertren Margien of sately tie door The origin of style 53.817.500 What is the operating leverage factor at the truet of stes? Begin by desirmining the tout Contribution Operating income Opething leverer found the operating Siverage factor to the decimal places) The operating leverage actors 1430 Requirements. By what percentage will operating nome changer Nye tales volumes 115 higher? Prove your ante. Round the percent to the decima volume increases 11. terting to witne Prove your wertoond the percentage to two decal places) Original volume contos Ade Increase in volume New volume con Muitpled by: Unit corbution margin New total contribution margin New operating income Ve Operating in before change in volume Increase in operating incense Percepe change College Try Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of 54.00 per carton of calendars of the variable expense, 71% is cost of goods sold, while the remaining 29% relates to variable operating expenses. The company sells each carton of calendars for $12.00 Read the requirements Requirement 1. Compute the number of cartons of calendars that College Try Calendars must sell each month to breakeven. Begin by determining the basic income statement equation Sales revenue Variable expenses Fixed 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 136,875 cartons Requirement 2. Compute the dollar amount of monthly sales College Try Calendars needs in order to earn $312,000 in operating income. Begin by determining the formula (Target operating income Fixed expenses Contribution morgin ratio Target sales in dollars (Round the contribution margin ratio to two decimal places) The monthly salos needed to cam $312,000 in operating income is $2,100,000 Requirement 3. Prepare the company's contribution margin income statement for June for sales of 465,000 cartons of calendars College Ty Contribution Margin Income Statement Month Ended June 30 Sales revenue $ 5,460,000 Variable expenses Cost of goods sold 1,292,200 Operating expenses 527.800 1.820,000 Contribution margin 3,640,000 Fixed expenses 1.095,000 Operating income $ 2,545,000 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 Sales revenue Sales revenue at breakeven - Margin of safety (in dollars) The margin of safety is $ 3,817,500 What is the operating leverage factor at this level of sales? Begin by determining the formula. Contribution margin Operating income Operating leverage factor (Round the operating leverage factor to three decimal places.) The operating leverage factor is 1.430 Requirement 5. By what percentage will operating income change if July's sales volume is 11% higher? Prove your answer. (Round the percentage to two decimal places.) If volume increases 11%, then operating income will increase 15.73% 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 New operating income vs. Operating income before change in volume Increase in operating income Percentage change %