Requirement 1-5

P7-63A (similar to) Question Help Spirit Rock Calendars imprints Calendars with colege names. The company has fixed expenses of 5.125 000 sach month plus variable expenses of $450 per carton of calendars or the vanille expenses is cost of goods sok, while the remang tak to viable operating expenses. The company ses each carton of Calendars for $19.50 Read the tourments Requirement 1. Co the number of cartons of calendars that Spint Rock Calendars must each month to breakeren Begin by determining the basic statement ouation = Operating income umber of cartons of calendars that Spirit Rock Calendars must sell each month to breakeven. income statement equation. 0 Requirements -X 1. Compute the number of cartons of calendars that Spirit Rock Calendars must sell each month to break even 2. Compute the dollar amount of monthly sales that the company needs in order to earn $338,000 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 465,000 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 Print Done