E6-24 (Algo) 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 $910,000 this year. The company's fixed costs are expected to be $1,220,000 and its variable costs are expected to be 50 percent of sales. Erin Shelton, Inc., earned $810,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Inc. 2. Prepare a contribution margin income statement on the basis break-even sales. 3. Calculate the required sales to meet the target profit of $910,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $910,000. 5. When the company earns $910000 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 4 Required 5 Calculate break-even sales for Erin Shelton, Inc. Break-Even Sales Required Required 2 > Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement on the basis of break-even sales. Contribution Margin Income Statement Contribution Margin Profit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the required sales to meet the target profit of $910,000. Torgot Sales Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement based on sales required to earn a target profit of $910,000. Contribution Margin Income Statement Contribution Margin Profit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 When the company earns $910,000 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, (.e. 1234 should be entered as 12.34%.)) Margin of Safety Margin of Safety an a Percentage of Salat %