Erin Shelton, Incorporated, wants to earn a target profit of $990,000 this year. The companys fixed costs are expected to be $1,380,000 and its variable costs are expected to be 75 percent of sales. Erin Shelton, Incorporated, earned $890,000 in profit last year. Required: Calculate break-even sales for Erin Shelton, Incorporated. Prepare a contribution margin income statement on the basis of break-even sales. Calculate the required sales to meet the target profit of $990,000. Prepare a contribution margin income statement based on sales required to earn a target profit of $990,000. When the company earns $990,000 of net income, what is its margin of safety and margin of safety as a percentage of sales?

Calculate break-even sales for Erin Shelton, Incorporated.

Prepare a contribution margin income statement on the basis of break-even sales. Note: Do not leave any cells blank. Enter a '0' wherever necessary.

Calculate the required sales to meet the target profit of $990,000.

Prepare a contribution margin income statement based on sales required to earn a target profit of $990,000.

When the company earns $990,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Note: Round your "Percentage Sales" answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.).