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College Spirit Calendars impeints calendars with colege names. The company has foxed oxpenses of $1,095,000 each month plus variable expenses of 54.00 per carton of calondars. Or the variable oxpense, 66\% is cost of goods sold, while the remaining 34% relates to variable operating expenses. The company sells each carton of caiendars for $12.00. Read the tequirements: Requirement 1. Compute the number of cartons of calendars that College Spirt Calendars must soll each month to breakeven. Begin by determining the basic income statement equation. Using the basie income statement equation you determined above solve for the number of cartons to break even. The breakevon sales is cartons. Requirement 2. Compute the dollar amount of monthly sales College Spint Calendars needs in order to eam $312.000 in operating income. Begin by determining the tormula. (Round the contribution margin ratio to two decimal places.) The monthly sales needed to earn $312,000 in operating income is Requirement 4. What is June's margin of safety (in dollars)? What is the operating leverage factor at this level of sales? Begin by determining the formula. = Margin of safety (in dollars) The margin of safety is What is the operating leverage factor at this level of sales? Begin by determining the formula. (Round the operating leverage factor to three decimal places.) The operating leverage factor is If volume increases 11%, then operating income will increase Prove your answer. (Round the percentage to two decimal places.)

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