Vast Spirit 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, 67% is cost of goods sold, while the remaining 33% relates to variable operating expenses. The company sells each carton of calendars for $16.50. Read the requirements. Requirement 1. Compute the number of cartons of calendars that Vast Spirit Calendars must sell each month to breakeven. Begin by determining the basic income statement equation. =Operatingincome 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 Vast Spirit Calendars needs in order to earn $308,000 in operating income. Begin by determining the formula. Vast Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus varlable expenses of $6.50 per carfon of calendars. Of the variable expense, 67% is cost of goods sold, while the remaining 33% relates to variable operating expenses. The company sells each carton of calendars for $16.50 Read the reouirements. Vast Spint Colendars 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, 67% is cost of goods sold, while the remaining 33% relates to variable operating expenses. The company sells each carton of calendars for $16.50. Read the requirements. Vast Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus varlable expenses of $6.50 per carton of calendars. Of the variable expense, 67% is cost of goods sold, while the temaining 33% relates to variable operating expenses. The company sells each cartin of calendars for $16.50. Read the cequitements. Requirement 4. What is June's margin of safety (in dollars)? What is the operating loverage factor at this lovel of sales? Begin by determining the formula. The margin of safety is What is the operating leverage factor at this level of sales? Begin by determining the formula. (Round the operating leverago foctor to three docimal places.) Vast Spirit Calendars imprints calendars with college namos. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6,50 per carton of calendars. Of the variable oxpense, 67% is cost of goods sold, while the remaining 33% relates to variable operating expenses. The company sels sach carton of calendars for $16.50. Read the reguirements, (Round the operating leverage factor to three decimal places.) The ogerating leverage factor is Requirement 5. By what percentage will oporating income change if July's sales volume is 11% higher? Prove your answer. (Round the percentage to two decimal places.) If volume increases 11%, then operating income will increase Prove your answer. (Round the percentage to wo decimal places.) Original volume (cartons) Add: Increase in volume Vast Spirit Calendars imprints calendars with college names. The company has foxed expenses of $1,095,000 each month plus variable expenses of $6 so per carton of calendars. Of the variable expense, 67% is cost of goods sold; while the remaining 33% relates to variable operating expenses. The company sells each carton of calendars for 516.50 . Vast Spirit 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, 67% is cost of goods sold, while the remaining 33% relates to variable operating expenses. The company sells each carton of calendars for $16.50
