1 2 A Universal Travel Contribution Margin Income Statement Three Months Ended March 31 3 4...
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1 2 A Universal Travel Contribution Margin Income Statement Three Months Ended March 31 3 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income B $ 425,000 85,000 340,000 170,000 170,000 $ $ 1. Prepare contribution margin income statements at sales levels of $240,000 and $450,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars. Universal Travel uses the contribution margin income statement internally. Universal's first quarter results are as follows: (Click the icon to view the income statement.) Universal's relevant range is sales of between $100,000 and $675,000. Read the requirements Requirement 1. Prepare contribution margin income statements at sales levels of $240,000 and $450,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $240,000 level. (Round the variable expense rate the nearest whole percent. Enter losses with a minus sign or parentheses.) Universal Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses (a) Contribution margin Less: Fixed expenses Operating income (loss) 1 2 A Universal Travel Contribution Margin Income Statement Three Months Ended March 31 3 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income B $ 425,000 85,000 340,000 170,000 170,000 $ $ 1. Prepare contribution margin income statements at sales levels of $240,000 and $450,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars. Universal Travel uses the contribution margin income statement internally. Universal's first quarter results are as follows: (Click the icon to view the income statement.) Universal's relevant range is sales of between $100,000 and $675,000. Read the requirements Requirement 1. Prepare contribution margin income statements at sales levels of $240,000 and $450,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $240,000 level. (Round the variable expense rate the nearest whole percent. Enter losses with a minus sign or parentheses.) Universal Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses (a) Contribution margin Less: Fixed expenses Operating income (loss)
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Answer rating: 100% (QA)
Contribution margin ratio Contribution margin Sales revenue 340000 425000 80 Varia... View the full answer
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
Posted Date:
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