on 1 of 2 This question: 1 point(s) possible Submit quiz College Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,065,000 each 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 Read the requirements Requirement 1. Compute the number of cartons of calendars that College Spirit Calendars must sell each month to breakeven. - Begin by determining the basic income statement equation Requirements Operating income Using the basic income statement equation you determined above solve for the number of cartons to break even. The breakeven sales is cartons Requirement 2. Compute the dollar amount of monthly sales College Spirit Calendars needs in order to earn $304,000 in operating income 1. Compute the number of cartons of calendars that College 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 475,000 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 Begin by determining the formula Target sales in dollars (Round the contribution margin ratio to two decimal places) The monthly sales needed to earn $304,000 in operating income is Requirement 3. Prepare the company's contribution margin income statement for June for sales of 475,000 cartons of calendars. Print Done College Spirit Contribution Margin Income Statement Month Ended June 30