while the remaining $34\%$ relates to variable, operating expenses. The company sells each carton of calendars for $$12\mathrm{.}00.$

Read the requirements.

Using the basic income statement equation you determined above solve for the number of cartons to break even.

The breakeven sales is

$136,875$ cartons.

Requirement $2.$ Compute the dollar amount of monthly sales Team Spirit Calendars needs in order to earn $$312,000$ in operating income

Begin by determining the formula.

$($Round the contribution margin ratio to two decimal places.$)$

The monthly sales needed to earn $$312,000$ in operating income is

$ $2,100,000$

Compute the number of cartons of calendars that Team Spirit Calendars must

sell each month to break even.

Compute the dollar amount of monthly sales that the company needs in order

to earn $$312,000$ in operating income $($round the contribution margin ratio to

two decimal places$).$

Prepare the company's contribution margin income statement for June for

sales of $455,000$ cartons of calendars.

What is June's margin of safety $($in dollars$)?$ What is the operating leverage

factor at this level of sales?

By what percentage will operating income change if July's sales volume is

$12\%$ higher? Prove your answer.

Requirement $3.$ Prepare the company's contribution margin income statement for June for sales of $455,000$ cartons of calendars.

Contribution Margin Income Statement

Month Ended June $30$