E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3] Erin Shelton, Incorporated, wants to earn a target profit of $830,000 this year. The company's fixed costs are expected to be $1,060,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Incorporated, earned $730,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Incorporated. 2. Prepare a contribution margin income statement on the basis of break-even sales. 3. Calculate the required sales to meet the target profit of $830,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $830,000. 5. When the company earns $830,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate break-even sales for Erin Shelton, Incorporated. Break-Even Sales Required t Required 2 > 1. Calculate Dreak-even sales or crin orenon, incorporated. 2. Prepare a contribution margin income statement on the basis of break-even sales. 3. Calculate the required sales to meet the target profit of $830,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $830,000. 5. When the company earns $830,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement on the basis of break-even sales. Note: Do not leave any cells blank. Enter a '0' wherever necessary. Contribution Margin Income Statement Contribution Margin Profit < Required 1 Required 3> E6-24 (Algo) Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety [LO 6-2, 6-3] Erin Shelton, Incorporated, wants to earn a target profit of $830,000 this year. The company's fixed costs are expected to be $1,060,000 and its variable costs are expected to be 60 percent of sales. Erin Shelton, Incorporated, earned $730,000 in profit last year. Required: 1. Calculate break-even sales for Erin Shelton, Incorporated. 2. Prepare a contribution margin income statement on the basis of break-even sales. 3. Calculate the required sales to meet the target profit of $830,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $830,000. 5. When the company earns $830,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required S Calculate the required sales to meet the target profit of $830,000. Target Sales 3. Calculate the required sales to meet the target profit of $830,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $830,000. 5. When the company earns $830,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. 22 Required 1 Required 2 Required 3 Required 41 Required 5 Prepare a contribution margin income statement based on sales required to earn a target profit of $830,000. Contribution Margin Income Statement Contribution Margini Profit Required: 1. Calculate break-even sales for Erin Shelton, Incorporated. 2. Prepare a contribution margin income statement on the basis of break-even sales. 3. Calculate the required sales to meet the target profit of $830,000. 4. Prepare a contribution margin income statement based on sales required to earn a target profit of $830,000. 5. When the company earns $830,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 When the company earns $830,000 of net income, what is its margin of safety and margin of safety as a percentage of sales? Note: Round your "Percentage Sales" answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.). Margin of Safety Margin of Safety as a Percentage of Sales % < Required 4 Required 5 y