Team Spirit Calendars imprints calendars with college names. The company has fixed expenses of $$1,065,000$ each month plus variable expenses of $$3\mathrm{.}50$ per carton of calendars. Of the variable expense, $71\%$ is cost of goods sold, while the remaining $29\%$ relates to variable operating expenses. The company sells each carton of calendars for $$13\mathrm{.}50.$

Read the requirements.

Requirement $1.$ Compute the number of cartons of calendars that Team 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 cartons.

Requirement $2.$ Compute the dollar amount of monthly sales Team Spirit Calendars needs in order to earn $$304,000$ 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 $$304,000$ in operating income is