E6-22 Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3 Erin Shelton, Inc., wants to earn a arget profit of S900,000 his year. The company's earned $800,000 in profit last year ed costs are expected to be S 200 00 and its vara e costs are expected to be percento sales. Sheiton. Inc. Required: 1. Calculate break-even sales for Erin Shelton, Inc. ak-Even Sales $ 3,000,000 2. Prepare a contribution margin income statement on the basis break-even sales. (Do not leave any cells blank, enter a zero wherever required.) Contribution Margin Income Statement Sales Variable Costs Contribution Margin Fixed Costs tOperating Income Profit 3. Calculate the required sales to meet the target profit of $900,000. Target Sales 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $900,000 Contribution Margin Income State Sales Costs Contribution Margin xed Costs Profit 5. When the company earns $900,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? (Round your "Percentage Sales" answer to 2 decimal places. (i.e..1234 should be entered as 12.34%.)) Margin of Safety Margin of Safety as a Percentage of Sales