Global Travel uses the contribution margin income statement internally. Global's first quarter results are as follows:

Global's relevant range is sales of between $ 135,000 and $ 675,000.

Requirements
1. Prepare contribution margin income statements at sales levels of $ 270,000 and $ 410,000.
2. Compute breakeven sales indollars.

Global Travel Contribution Margin Income Statement Three Months Ended March 31 5 Sales revenue 6 Less: Variable expenses 7 Contribution margin 8 Less: Fixed expenses 9 Operating income 400,000 120,000 $ 280,000 10