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.

$[-=$ Margin of safety $($in dollars$)$

The margin of safety is

What is the operating leverage factor at this level of sales? Begin by determining the formula

$[\frac{?}{\text{b}\text{a}\text{r}}(grad)]=$ Operating leverage factor

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

The operating leverage factor is

If volume 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 $($cartons$)$

Multiplied by: Unit contribution margin

New total contribution margin

Less: Fixed expenses

New operating income

vs$.$ Operating income before change in volume

Increase in operating income

Percentage change

Requirements

Compute the number of cartons of calendars that

Spirit Rock Calendars must sell each month to break

even.

Compute the dollar amount of monthly sales that the

company needs in order to earn $$308,000$ in operating

income $($round the contribution margin ratio to two

decimal places$).$

Prepare the company's contribution margin income

statement for June for sales of $495,000$ cartons of

calendars.

What is June's margin of safety $($in dollars$)?$ What is the

operating leverage factor at this level of sales?

By what percentage will operating income change

if July's sales volume is $14\%$ higher? Prove your

answer.

Breakeven sales $=109500$

The monthly sales needed to earn $$308,000$ in operating income is $$2315182.$