Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of $81,900 by using the point in sales equation. 246,000 Feedback Check My Work 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1. Enter amounts as positive numbers. Chillmax Company Contribution Margin Income Statement At Point in Sales for Target Income Total Sales 246,000 Total variable cost 78,000 X Total contribution margin $ Total fixed cost 78,000 Operating income