Fast Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,125,000 each month plus variable expenses of $4.50 per carton of calendars. Of the variable expense, 69% is cost of goods sold, while the remaining 31% relates to variable operating expenses. The company sells each carton of calendars for $19.50

1.) The Break Even Sale is ______ Cartoons?

2.) Monthly Sales Needed to Earn $338,000 in Operating Income is ______.

3.) Prepare the Company's Contribution Margin Income Statement for June for Sales of 470,000 Cartoons

Sales Revenue:

Variable Expenses:

Cost of Goods Sold:

Operating Expenses:

Contribution Margin:

Fixed Expenses:

Operating Income:

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. (Round the percentage to two decimal places.