please do the problem in this format with the numbers listed in picture 3 that also has the requirements on it.
Requirement 1. Compute the number of cartons of calendars That Spirit Rock Calendars must sell each month to breakeven Begin by determining the basic income statement equation Sales revenue Variable expenses Fored expenses Operating income Using the basic income statement equation you determined above solve for the number of cartons to break even The breakeven sales is 75.000 tons Requirement 2. Compute the dollar amount of monthly sales Spirit Rock Calendars needs in order to earn $338,000 in operating income Begin by determining the formula Fixed expenses Target operating income) Contribution margin ratio Target sales in dollars (Round the contribution margin ratio to two decimal places) The monthly sales needed to eam 5338,000 in operating income is 1.900.000 Requirement 3. Prepare the company's contribution margin income statement for June for sales of 470,000 cartons of calendars Spirit Rock Contribution Margin Income Statement Month Ended June 30 Sales revenue $ 9,165,000 Variable expenses Cost of goods sold $ 1,480,500 Operating expenses 634,500 2.115,000 Contribution margin 7,050,000 Fixed expenses 1.125,000 Operating income $ 5,925.000 Requirement 4. What is June's margin of safety in dollars)? What is the operating leverage factor at this level of sales? Begin by determining the formula Sales revenue Sales revenue at breakeven Margin of safety in dollars) The margin of safety is $ 7.702 500 What is the operating leverage factor at this level of sales? Begin by determining the formula Contribution margin 1 Operating income Operating loverage factor (Round the operating leverage factor to three decimal places) The operating leverage factoris 1.190 Requirement 5. By what percentage will operating income change if July's sales volume is 13% higher? Prove your answer. (Round the percentage to two decimal places) 15.47 $ Il volume increases 13%, then operating income will increase Prove your answer (Round the percentage to two decimal places) Original volume (cartons) 470.000 61 100 Add Increase in volume New volume (cartons) 531.100 15.00 Multiplied by Unit contribution margin New total contribution margin $ 7.966,500 Less Foed expenses (1.125.000 New operating income $ 6.841,500 vs. Operating income before change in volume (5.925000 $ 916 500 Increase in operating income 15:47 Percentage change Try Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $4.00 per carton of calendars. Of the variable expense, 74% is cost of goods sold, while the remaining 26% relates to variable operating expenses. The company sells each carton of calendars for $12.00 Read the requirements Requirement 1. Compute the number of cartons of calendars that Try Spirit Calendars must selleach month to breakeven Begin by determining the basic income statement equation - Operating income Requiremerian 1. Compute the number of cartons of calendars that Try Spirit Calendars must sel each month to break even 2. Compute the dolar amount of monthly sales that the company needs in order to earn $312.000 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 470,000 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 it Julys sales volumes 15% higher? Prove your answer Print Done
