Erin Shelton, Inc., wants to earn a target profit of $910,000 this year. The companys 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.

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 $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.