E6-22 Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3] Erin Shelton, Inc., wants to earn a target profit of $820,000 this year. The company's fixed costs are expected to be $1,040,000 and its variable costs are expected $720,000 in profit last year. be 50 percent of sales. Erin Shelton, Inc., earned Required: 1. Calculate break-even sales for Erin Shelton, Inc. Break-Even Sales 2. Prepare a contribution margin income statement on the basis break-even sales. (Do not leave any cells blank, enter a zero wherever required.) Contribution Margin Income Statement Contribution Margin Profit Calculate the required sales meet the target profit 5820.000 Target Sales 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $820,000. Contribution Margin Income Statement Contribution Margin Profit 5. When the company ears $820,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? (Round your "Percentage Sales" answer to 2 decimal places. (I.e..1234 should be entered as 12.34%.)) Margin of Safety Margin of Safety as a Percentage of Sales %