First Nation Travel uses the contribution margin income statement internally. First Nations first-quarter results follow. First Nations relevant range is between sales of $100,000 and $700,000. FIRST NATION TRAVEL contribution margin Income Statement Three Months Ended March 31 Sales revenue............................................................................................
First Nation Travel uses the contribution margin income statement internally. First Nation’s first-quarter results follow. First Nation’s relevant range is between sales of $100,000 and $700,000.
FIRST NATION 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 expenses................................................................................. 150,000
Operating income..................................................................................... $250,000
Requirements
1. Prepare contribution margin income statements at sales levels of $150,000 and $600,000. (Hint: Use the contribution margin 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...
FIRST NATION 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 expenses................................................................................. 150,000
Operating income..................................................................................... $250,000
Requirements
1. Prepare contribution margin income statements at sales levels of $150,000 and $600,000. (Hint: Use the contribution margin 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...
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
- Tutor Answer
Req 1 First Nation Travel Contribution Margin Income Statements Sales revenu…View the full answer
Related Book For 
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
Posted Date: April 30, 2015 10:51:48
Students also viewed these Managerial Accounting questions