... The companies 125.000 hp the wiped on 0% ve Technolds 1850 Requirement Compact Sondas mascottobre X - i Requirements 1. Compute the number of cartons of calendars that Great 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 480,000 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 12% higher? Prove your answer. Print Done Requirement 1. Compute the number of cartons of calendars that Great Spirit Calendars must sell each month to breakeven Begin by determining the basic income statement equation Operating income Using the basic income statement equation you determined above solve for the number of cartons to break even The breakeven sales is Requirement 2. Compute the dollar amount of monthly sales Great Spirit Calendars needs in order to earn $338,000 in operating income. Begin by determining the formula Cartons Target sales in dollars (Round the contribution margin ratio to two decimal places Requirement 3. Prepare the company's contribution margin income statement for June for sales of 480,000 cartons of calendars Great Spirit Contribution Margin Income Statement Month Ended June 30 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 Operating leverage factor Requirement 5. By what percentage will operating income change if July's sales volume is 12% higher? Prove your answer (Round the percentage to two decimal places) i vohume increases 12% then operating income will increase Prove your answer. Round the percentage to two decimal places) Ongmal volume (Canon) Add Increase in volume Now volume cartons) Multiplied by Unction margin New to contribution margin Less Fixed expenses wperating income Oporting to before change in volume Inice operating Pero no Choose from any storierny number in the input fields and then continue to me next question Great Spinit Calendars imprints calendars with college names. The company has fixed expenses of $1,125,000 each month plus variable expenses of $450 por 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 $19.50 ha Read the requirements
