E6-22 Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3]

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 target profit of $830,000 this year. The company's fixed costs are expected to be Sl and its variable costs are expected to be 60 percent ot sales. Erin Shelton, Inc., earned S730,OOO in profit last year. Required: 1. Calculate break-even sales tor Erin Shelton, Inc. ak-Even Sal 2. Prepare a contribution margin income statement on the basis break-even sales. (Do not leave any cells blank, enter a zero wherever required.) ontribution Ma in Income Statement Contribution Margin pmflt 3. Calculate the required sales to meet the target profit of $830,000 et Sales