Question

Erin Shelton, Inc., wants to earn a target profit of $940,000 this year. The company's fixed costs are expected to be $1,280,000 and its variable costs are expected to be 75 percent of sales. Erin Shelton, Inc., earned $840,000 in profit last year Required 1. Calculate break-even sales for Erin Shelton, Inc Break-Even Sales 2. Prepare a contribution margin income statement on the basis break-even sales. (Do not leave any cells blank, enter a zero wherever required.) Contribution Margin Income Statement Contribution Margin Profit