Erin Shelton, Incorporated, wants to earn a target profit of $940,000 this year. The company's fixed costs are expected to be $1,280,000 and its variable costs are expected to be 75 percent of sales. Erin Shelton, Incorporated, earned $840,000 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 $940,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $940,000. 5. When the company earns $940,000 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 31 Required 4 Required 51 Calculate break-even sales for Erin Shelton, Incorporated. Break Even Sales Required 1 Required 2 > Erin Shelton, Incorporated, wants to earn a target profit of $940,000 this year. The company's fixed costs are expected to be $1,280,000 and its variable costs are expected to be 75 percent of sales. Erin Shelton, Incorporated, earned $840,000 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 $940,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $940,000. 5. When the company earns $940,000 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 Prepare a contribution margin income statement on the basis of break-even sales. Note: Do not leave any cells blank. Erter a '0' wherever necessary. Contribution Margin Income Statement Contribution Margin Profit Erin Shelton, Incorporated, wants to earn a target profit of $940,000 this year. The company's fixed costs are expected to be $1,280,000 and its variable costs are expected to be 75 percent of sales. Erin Shelton, Incorporated, earned $840,000 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 $940,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $940,000. 5. When the company earns $940,000 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 the required sales to meet the target profit of $940,000. Target Sales 1 Erin Shelton, Incorporated, wants to earn a target profit of $940,000 this year. The company's fixed costs are expected to be $1,280,000 and its variable costs are expected to be 75 percent of sales. Erin Shelton, Incorporated, earned $840,000 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 $940,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $940,000. 5. When the company earns $940,000 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 Prepare a contribution margin income statement based on sales required to earn a target profit of $940,000. Contribution Margin Income Statement Contribution Margin Profit Required 3 Required 5> Erin Shelton, Incorporated, wants to earn a target profit of $940,000 this year. The company's fixed costs are expected to be $1,280,000 and its variable costs are expected to be 75 percent of sales. Erin Shelton, Incorporated, earned $840,000 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 $940,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $940,000. 5. When the company earns $940,000 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 When the company earns $940,000 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%.). Margin of Safety Margin of Safety as a Percentage of Sales