Requirement 3. Prepare the company's contribution margin income statement for 475000 June for sales of cartons of calendars.

I cant figure out the order of requirement 3. I have looked on countless other posts but they seem to be out of order.

Homework: Chapter 7 Homework Save Score: 1.79 of 10 pts 1 of 1 (1 complete) HW Score: 17.95%, 1.79 of 10 pts 0 WP7-63A (similar to) Question Help Great 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, 66% is cost of goods sold, while the remaining 34% 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 Great Spirit Calendars must sell each month to breakeven. Begin by determining the basic income statement equation. Sales revenue Variable expenses Fixed 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 136,875 cartons. Requirement 2. Compute the dollar amount of monthly sales Great Spirit Calendars needs in order to earn $312,000 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 earn $312,000 in operating income is $ 2,100,000 Requirement 3. Prepare the company's contribution margin income statement for June for sales of 475,000 cartons of calendars. 5700000 Great Spirit Contribution Margin Income Statement Month Ended June 30 Sales revenue Cost of goods sold Contribution margin 4446000 Operating expenses 646000 Contribution margin Fixed expenses 1254000 3800000 1095000 Operating income 2705000 Requirements 1. Compute the number of cartons of calendars that Great 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 $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 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 16% higher? Prove your answer. Print Done