EAlgo Computing Target Profit, Preparing Contribution Margin Income Statement, Computing Margin of Safety LO
Erin Shelton, Incorporated, wants to earn a target profit of $ this year. The company's fixed costs are expected to be $ and its variable costs are expected to be percent of sales. Erin Shelton, Incorporated, earned $ in profit last year.
Required:
Calculate breakeven sales for Erin Shelton, Incorporated.
Prepare a contribution margin income statement on the basis of breakeven sales.
Calculate the required sales to meet the target profit of $
Prepare a contribution margin income statement based on sales required to earn a target profit of $
When the company earns $ 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.
Prepare a contribution margin income statement on the basis of breakeven sales.
Note: Do not leave any cells blank. Enter a wherever necessary.
tableContribution Margin Income StatementSales$n
