Erin Shelton, Incorporated, wants to earn a target profit of $840,000 this year. The company's fixed costs are expected to be $1,080,000 and its varlable costs are expected to be 70 percent of sales. Erin Shelton, Incorporated, earned $740,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Incorporated. 2. Prepare a contribution margin income statement on the basis of break-even sales. 3. Calculate the required sales to meet the target profit of $840,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $840,000. 5. When the company earns $840,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Erin Shelton, Incorporated, wants to earn a target profit of $840,000 this year. The company's fixed costs are expected to be $1,080,000 and its varlable costs are expected to be 70 percent of sales. Erin Shelton, Incorporated, earned $740,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Incorporated. 2. Prepare a contribution margin income statement on the basis of break-even sales. 3. Calculate the required sales to meet the target profit of $840,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $840,000. 5. When the company earns $840,000 of net income, what is its margin of safety and margin of safety as a percentage of sales