HW 60 Seved 25 7 poinm 015831 10 10 E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety (LO 6-2, 6-3] Erin Shelton, Incorporated, wants to earn a target profit of $810,000 this year. The company's fixed costs are expected to be $1,020,000 and its variable costs are expected to be 40 percent of sales. Erin Shelton, Incorporated, earned $710,000 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 $810,000 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $910,000 5. When the company earns $810,000 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. M Calculate break-even sales for Erin Shelton, Incorporated. Required 2> Help Save & Exit Submit Check my work