Western Travel uses the contribution margin income statement internally Western 's first quarter results are as follows WESTERN TRAVEL contribution margin Income Statement Three Months Ended March 31 Sales revenue $500,000 Less Variable expenses 100,000 contribution margin $400,000 Less Fixed expen...

Req 1 Western Travel Contribution Margin Income Statements Sales revenue 2 ...

Western Travel uses the contribution margin income statement internally. Western's first-quarter results are as follows: WESTERN TRAVEL

Question:

Western Travel uses the income statement internally. Western's first-quarter results are as follows:
WESTERN TRAVEL
Income Statement
Three Months Ended March 31
Sales revenue............................................................................................$500,000
Less: Variable expenses.............................................................................100,000
................................................................................$400,000
Less: Fixed expenses.................................................................................174,000
Operating income.....................................................................................$226,000
Western's relevant range is sales of between $100,000 and $700,000.
Requirements
1. Prepare income statements at sales levels of $255,000 and $363,000.
2. Compute breakeven 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...