Airborne Travel uses the contribution margin income statement internally. Airbornes first quarter results follow. Airbornes relevant range

Question:

Airborne Travel uses the income statement internally. Airborne’s first quarter results follow. Airborne’s relevant range is between sales of $201,000 and $463,000.
Airborne Travel
Income Statement
Three Months Ended March 31
Sales revenue.......................................................................................... $ 318,500
Less: Variable expenses.......................................................................... (129,000)
.............................................................................. 189,500
Less: Fixed expenses............................................................................... (179,000)
Operating income................................................................................... $ 10,500
Requirements
1. Prepare income statements at sales levels of $251,000 and $363,000. (Hint:Use the ratio.)
2. Compute break-even sales in dollars.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...