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

Global’s relevant range is between sales of $250,000 and $360,000.
Requirements 1. Calculate the contribution margin ratio.
2. Prepare two contribution margin income statements: one at the $250,000 sales level and one at the $360,000 sales level. (Hint: The proportion of each sales dollar that goes toward variable costs is constant within the relevant range.)

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GLOBAL TRAVEL Contribution Margin Income Statement Three Months Ended March 31, 2016 Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income $318,500 111,475 207,025 175,000 $ 32,025