Airborne Travel uses the contribution margin income statement internally Airborne s
Airborne Travel uses the contribution margin income statement internally. Airborne’s first quarter results follow. Airborne’s relevant range is between sales of $201,000 and $463,000.
Airborne Travel
Contribution Margin Income Statement
Three Months Ended March 31
Sales revenue.......................................................................................... $ 318,500
Less: Variable expenses.......................................................................... (129,000)
Contribution margin .............................................................................. 189,500
Less: Fixed expenses............................................................................... (179,000)
Operating income................................................................................... $ 10,500
Requirements
1. Prepare contribution margin income statements at sales levels of $251,000 and $363,000. (Hint:Use the contribution margin ratio.)
2. Compute break-even sales in dollars.
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