Erin Shelton, Inc., wants to earn a target profit of $840,000 this year. The companys fixed costs are expected to be $1,400,000 and its variable costs are expected to be 44 percent of sales. Erin Shelton, Inc., earned $900,000 in profit last year.

Calculate break-even sales for Erin Shelton, Inc

Prepare a contribution margin income statement on the basis break-even sales. (Do not leave any cells blank, enter a zero wherever required.)

Calculate the required sales to meet the target profit of $840,000.

Prepare a contribution margin income statement based on sales required to earn a target profit of $840,000.

When the company earns $840,000 of net income, what is its margin of safety and margin of safety as a percentage of sales?