College Ty Calendars imprints calendars with college names. The company has found expenses of $1.125.000 each month plus variable expenses of $450 per carton of Calendars. Of the variable expense, 75% is cost of goods sold, while remaining 25% relates to variable operating expenses. The company ses each carton of calendars for $19.50 Read the requirements Requirement 1. Compute the number of cartons of calendars that College Try Calendars must selleach month to breakeven Begin by determining the basic income statement equation Operating income Using the basic income statement equation you determined above solve for the number of cartons to break even The breakeve sales is cartons Requirement 2. Compute the dollar amount of monthly sales College Try Calendars needs in order to eam $998,000 in operating income. Begin by determining the formula Target sales in dollars (Round the contribution marginalio to two decimal places) The monthly sales needed to earn $338,000 in operating income is Requirement 3. Prepare the company's contribution margin income statement for Juno for sales of 470,000 cartons of calendars. College Try Contribution Margin Income Statement Month Ended June 30 Choose from any list or enter any number in the input fields and then continue to the next question Cologe Try Calendars imprints calendars with college names. The company has found expenses of $1,125,000 each month plus variable expenses of $4.50 per carton of calendars. Of the variable expense, 75% is cost of remaining 25% relates to variabile operating expenses. The company sells each carton of calendars for $19.50 Read the requirements Requirement 3. Prepare the company's contribution margin income statement for June for sales of 470,000 cartons of calendars College Try Contribution Margin Income Statement Month Ended June 30 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 of this level of sales? Begin by determining the formula This Question: 1 pt 1 of 2 (0 complete College Try Calendars imprints calendars with college names. The company has fixed expenses of $1,125,000 each month plus variable expenses of $4.50 per carton of calendars of the remaining 25% relates to variable operating expenses. The company sells each carton of calendars for $19.50 Read 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 will operating income change in July's sales volume is 14% higher? Prove your answer. (Round the percentage to two decimal places) If volume increases 14%, 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 Choose from any list or enter any number in the input fields and then continue to the next question. MACBOOK PO College Try Calendars imprints calendars with college names. The company has fixed expenses of $1,125,000 each month plus variable expenses of $4.50 per carton of calendars. remaining 25% relates to variable operating expenses. The company sells each carton of calendars for $19.50 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 14% higher? Prove your answer. (Round the percentage to two decimal places.) If volume increases 14%, 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 New operating income vs. Operating income before change in volume Increase in operating income Percentage change
