Help please!!

P7-75B. Comprehensive CVP problem (Learning Objectives 1. 2. & 5) Whoosh Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of calendars. Of the variable expenses, 68% is cost of goods sold, while the remaining 32% relates to variable operating expenses. The company sells each carton of calendars for $16.50 Requirements 1. Compute the number of cartons of calendars that Whoosh Calendars must sell each month to break even. Fixed expenses Operating income Sales revenue Sale X Units sold price per unit Variable expenses Variable x Units sold cost per unit Fixed expenses Operating income ($ $0 X Units sold) ($ X Units sold) $ $ X Units sold X Units sold Units sold wly Breakeven sales in units Cartons 2. Compute the dollar amount of monthly sales that the company needs in order to earn $308,000 in operating income (round the contribution margin ratio to two decimal places). Contribution margin = $_ $ Contribution margin ratio = $ /$ frounded) Target sales in dollars = Fixed expenses + Target operating income Contribution margin ratio Target sales in dollars 3. Prepare the company's contribution margin income statement for June for sales of 450,000 cartons of calendars. Whoosh Calendars Contribution Margin Income Statement Month Ended June 30 Sales revenue Less variable expenses: Cost of goods sold Operating expenses Contribution margin Less: 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? cartons as per carton) Margin of safety = Sales - Sales at breakeven Margin of safety = $ Margin of safety = $ Margin of safety = $ Contribution margin Operating leverage factor = Operating income Operating leverage factor = $ Operating leverage factor = (rounded) 5. By what percentage will operating income change if July's sales volume is 16% higher? Prove your answer. _% (operating leverage factor of If volume increases 16%, then operating income will increase multiplied by 16%). Proof: Original volume (cartons) Add: Increase in volume % New volume (cartons) Multiplied by: Unit contribution margin New total contribution margin Less: Fixed expenses New operating income vs. Operating income before change in Volume Increase in operating income Percentage change ($ /$ ) % (rounded)