E$6-24($Algo$)$ Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety $[$LO $6-2,6-3]$

Erin Shelton, Incorporated, wants to earn a target profit of $$920,000$ this year. The company's fixed costs are expected to be $$1,240,000$ and its variable costs are expected to be $50$ percent of sales. Erin Shelton, Incorporated, earned $$820,000$ in profit last year.

Required:

Calculate break$-$even sales for Erin Shelton, Incorporated.

Prepare a contribution margin income statement on the basis of break$-$even sales.

Calculate the required sales to meet the target profit of $$920,000.$

Prepare a contribution margin income statement based on sales required to earn a target profit of $$920,000.$

When the company earns $$920,000$ of net income, what is its margin of safety and margin of safety as a percentage of sales?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Required $5$

Prepare a contribution margin income statement on the basis of break$-$even sales.

Note: Do not leave any cells blank. Enter a $\text{'}0\text{'}$ wherever necessary.

$\backslash$table$[[$Contribution Margin Income Statement$],[,],[,],[,],[$Contribution Margin,$],[,],[,],[,]]$