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Please help with requirements 2-5 ( please show work of problems) Try Spirit Calendars imprints calendars with college names. The company has fixed expenses of
Please help with requirements 2-5 ( please show work of problems)
Try Spirit 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 expense, 67% is Cost of Goods Sold, while the remaining 33% relates to variable operating expenses. The company sells each carton of calendars for $16.50. 1. Compute the number of cartons of calendars that Try Spirit Calendars must sell each month to 2. Compute the dollar amount of monthly sales Try Spirit Calendars needs in order to earn 3. Prepare the company's contribution margin income statement for June for sales of 495,000 4. What is June's margin of safety (in dollars)? What is the operating leverage factor at this level 5. By what percentage will operating income change if July's sales volume is 16% higher? Prove break even. $308,000 in operating income(round the contribution margin ratio to two decimal places). cartons of calendars. of sales? your answer Requirement 1. Compute the number of cartons of calendars that Try Spirit Calendars must sell ea Begin by determining the basic income statement equation. Sales revenue Variable expenses Fixed expenses Using the basic income statement equation you determined above solve for the number of cartonst The breakeven sales is cartons. Requirement 2. Compute the dollar amount of monthly sales Try Spirit Calendars needs in order to )1 (Round the contribution margin ratio to two decimal places.) The monthly sales needed to eam $308,000 in operating income is SStep by Step Solution
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