Read the reyuinements

Requirement $1.$ Compute the number of cartons of calondars that College Team Calendars must sell each month to breakeven.

Begin by determining the basic income statement equation.

Sales revenve $-$ Variable expensos

Operating incomo

Using the basic income statement equabion you determined above solve for the number of cartons to break even.

The breakeven sales is $,29500$ cartons.

Requirement $2.$ Compute the dolar amount of monthly sales College Team Calendars needs in onder to earn $$308,000$ in operaling income.

Begin by determining the formula.

Target operating income $$ Flecd expenses $+$ Contribution margin ratio $=$ Target sales in dollars

$($Round the contribution margin ratio to two decimal places.$)$

The monely sales needed to earn $$308,000$ in operating income is $4950.$

Requirement $3.$ Prepare the company's contribution margin income statement for June for sales of $490,000$ cartons of calendars.

Requilrement $4.$ What is June's margin of safely $($in dollars$)?$ What is the operating leverage factor at this level of sales?

Begin by delemining the formula.

The margin of satety is

What is the operating levenzge factor at this level of sales? Begin by dietermining the formula.

$+$

$=$ Operating leverage tactor

$($Round the operating leverage factor to three decimal places.$)$

The aperating leverage factor is

Requirvment $5.$ By what percentage will operating income change if Julys sales valume is $14\%$ highen Prove your answer. $($Round the percentago to two decimal placas.$)$

If rotume increases $14\%,$ then operating income will increase $\%.$

Prove your answer. $($Round the percentage to two decimal places.$)$

Original volume $($cartons$)$

Add: increase in volume

New volume $($cartans$)$

Multiplied by Unit contribution margin

New tobal contribution margin

Less: Fixed experses

New operating income

ve$.$ Operating income before change is valume

Increase in operaling incomo

Percontage change