Fast Spint Calendars imprints calendars with college names. The company has faed expenses of $1,065,000 month plus variable expenses of $3.50 per carton of calendars. Of the variable expense, 72% is cost of goods sold while the remaining 28% relates to variable operating expenses. The company sells each carton of calendars for $13.50 Requirement 1. Compute the number of cartons of calendars that Fast Spirt Calendars must sell each month to Begin by determining the basic income statement equation Using the basic income statement equation you determined above solve for the number of cartons to break ever Requirement 2. Compute the dollar amount of monthly sales Fast Spint Calendars needs in order to $304,000 in operating income Begin by determining the formul Target sales in dolla (Round the contribution margatio to two decimal places) The monthly sales needed to sam $304,000 in operating income is Requirement 3. Prepare the company's contribution margin income statement for June for sales of 495.000 of calendars Fast Spir Contribution Margin Income Statement Month Ended June 30 Requirement 4. What is June's margin of safety (in dollars? What is the operating leverage factor at the level Begin by determining the formula The margin of safety What is the operating leverage factor at this level of sales? Begin by determining the form Operating leverage factor (Round the operating leverage factor to three deca The operating leverage factor Requirement 5. By what percentage will operating income change if July's sales volume is 14% higher? Prove your answer (Round the percentage to two decimal place) volume increase 14%, then operating income will increase Prove your answer (Round the percentage to two decimal places) Original volume (cartons) Add increase in Multiplied by Unit contribution margin New total contribution margin New operating income vs. Operating income before change in volume Percentage change Requirements 1. Compute the number of cartons of calendars that Fast Spirit Calendars must sell each month to break even. 2. Compute the dollar amount of monthly sales that the company needs in order to earn $304,000 in operating income (round the contribution margin ratio to two decimal places). 3. Prepare the company's contribution margin income statement for June for sales of 495,000 cartons of calendars. 4. What is June's margin of safety (in dollars)? What is the operating leverage factor at this level of sales? 5. By what percentage will operating income change if July's sales volume is 14% higher? Prove your answer. -