Question

Spint Calendars imprints calendars with college names. The company has fixed expenses of $1,096,000 each month plus variable expenses of $4.00 per carton of calendars, of goods sold, while the remaining 27% relates to variable operating expenses. The company sells each carton of Galendars for $12.00 variable expense, 73% is cost of Head the requirements Requirement 1. Compute the number of cartons of calendars that spre Calendars must sel each month to break even Begin by determining the basic income statement equation, Operating income Requirements 1. Compute the number of cartons of calendars that Spirt Calendars must sol each month to break even 2. Compute the dollar amount of monthly sales that the company needs in order to sam $312.000 in operating income fround the contribution margin ratio to two decimal places) 3. Prepare the company's contribution margin income statement for June for sales of 450,000 cartons of calendars 4. What is June's margin of safety in dollars? What is the operating leverage factor at this level of sales? 5. By what percentage will operating Income change Jy's sales volume is 10% higher? Prove your answer Print Done Choose from any drop-down list and then click che

Answer 1

The answer is attached in below picture

Please refer and if any doubts, send me comment before rating my answer, i will clarify the doubt.

Thanks

Computation e numb of contons need to be sold to bshoak even Foamula Fixed Cost Contsibution Per unit Baeak-even (units). Here ixed cost $1095,000 ontsibution Sale poia Vasiable cost $12 Saleprica= Less Vaiable uost 4)Cinuudos both COGS opesat) ContubutioD. $8 Contsibution Dsng fo fenmula $1095000 $8 Boreak evenunits 136875

Computation monthly sals neadad to eaan $1ao0o opesahng oLome FOsmula Frxed Cost +Desisrad nome Sale noadad Contaribution per unit 109so00 +1a0o0 07000 $3 Sals noeded 13933S units 138335 X $1R (sale psiu) Sale noadedd salus neded n $ $166Q500 Paapasation contaibutioD maain income statmant fos 450000 cCLtons Paaticulass Unit pric Total Onits Sale Ccastons) Leag: Vasiable Cost 4 S0000 $12 450000 $400000 $2.92 13140o. t goods sold Gross contaibution 4086000 gio Less: Vaniable opesahingSo0o0 1.08 4 86000 exporses contibutioD C$4X2 3609000 magin Less: Fixed cosl- 109 5000 soSo00 net opesating focome

masgin e safety Cio dolans) Fosmula Masgin ef safety: Guaank sals Bsraak evep salu Hesa, Cusoant Salas , 400 Ooo Bsraak een sales= $1642500 Borcak-evenpoint XSale psice 13687S X $12 CRafer Using formula $5400000- $64soo magin safety(Dallas)27S 4) Comput ation operabing levesage Formula Fixed Cos Vosriable cost Opeatg leuesaga L0gs006 1314000 + $48coc0 fixed cost Vasiable cost Using in fornula 95ం00 1800000 opesating levesage O.6083

opeeating fouome change it 0y hiko in sales Cursent Chame New Pasticulass Situahion situation CRafes '3 Sales Lesa Variable 400000 10 40000 pocoot 1314000 10% 1 1445900 Gooss contaibution mooi 9040 44 99,600 Less Vasiable opisat 484oo0 10 53 4600 expenses Contribuhion main 36000D ంం Less: Fixed Cosi 10gs0o Samu 10 3S0oD Det operatirg intome osoco 865 oo0 Iocome Lendir veuo Income tendus cusaent situation change TOLOME wndo Curent situation sosoo0-28C soo0 శిక్రంకరం change 14.37%