$($Click the icon to view the income statement.$)$

Universal's relevant range is sales of between $$120,000$ and $$680,000.$

Read the requirements.

Requirement $1.$ Prepare contribution margin income statements at sales levels of $$270,000$ and $$440,000.($Hint: Use the contribution margin ratio.$)$

Universal Travel

Contribution Margin Income Statement

Three Months Ended March $31$

Sales revenue

Less: Variable expenses

Contribution margin

Less: Fixed expenses

Operating income $($loss$)$

Now prepare the contribution margin income statement at the $$440,000$ level. $($Round the variable expense rate to the ne

Universal Travel

Contribution Margin Income Statement

Three Months Ended March $31$

Requirements

A B

$1$ Universal Travel

$2$ Contribution Margin Income Statement

$3$ Three Months Ended March $31$

$4$ Sales revenue $$435,000$

$5$ Less: Variable expenses $87,000$

$6$ Contribution margin $$348,000$

$7$ Less: Fixed expenses $170,000$

$8$ Operating income $$178,000$