TeamSpirit Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of calendars. Of the variable expense, 70% is cost of goods sold, while the remaining 30% relates to variable operating expenses. The company sells each carton of calendars for $16.50.

Requirement 3. Prepare the company's contribution margin income statement for June for sales of 480,000 cartons of calendars.

Team SpiritContribution Margin Income StatementMonth Ended June 30Sales revenue______Variable expenses:Cost of goods sold______Operating expenses____________Contribution margin_______Fixed expenses1,095,000Operating income_______

Requirement 4. What is June's margin of safety (in dollars)? What is the operating leverage factor at this level of sales?