Show All Your Works For Your Response: Calculate Increase in volume, New volume (cartons), New total contribution margin, New operating income, Increase in operating income, Percentage change For Requirement 5 Fast Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,125,000 each month plus variable expenses of $4.50 per carton of calendars. Of the variable expense, 68% is cost of goods sold, while the remaining 32% relates to variable operating expenses. The company sells each carton of calendars for $19.50. Requirements . X 1. Compute the number of cartons of calendars that Fast 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 $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. Requirement 5. By what percentage will operating income change if July's sales volume is 14% higher? Prove your answer. (Round the percentage to two decimal places.) If volume increases 14%, then operating income will increase 16.69 % Prove your answer. (Round the percentage to two decimal places.) Original volume (cartons) 465,000 Add: Increase in volume New volume (cartons) 15.00 Multiplied by: Unit contribution margin New total contribution margin Less: Fixed expenses (1,125,000) New operating income vs. Operating income before change in volume (5,850,000) Increase in operating income Percentage change