For its top managers, Worldwide Travel formats its income statement as follows:

Worldwide's relevant range is between sales of $245,000 and $364,000.
Requirements
1. Calculate the contribution margin ratio.
2. Prepare two contribution margin income statements: one at the $245,000 level and one at the $364,000 level.
3. Compute breakeven sales indollars.

Transcribed Image Text:

WORLDWIDE TRAVEL Contribution Margin Income Statement Three Months Ended March 31, 2012 Sales revenue $ 317,500 Variable costs 95,250 Contribution margin 222,250 Fixed costs 175,000 Operating income 47,250