EXERCISES Group B E7-38B Prepare contribution margin income statements (Learning Objective Aussie Travel uses the contribution margin income statement internally. Aussie's second quarter results are as follows: Aussie Travel Contribution Margin Income Statement Three Months Ended June 30 4 5 Sales revenue 6 Less: Variable expenses 7 Contribution margin 8 Less: Fixed expenses 9 Operating income 10 $ 550,000 $ 357,500 176,800 180,700 Aussie's relevant range is sales of between $115,000 and $680,000. Requirements 1. Prepare contribution margin income statements at sales levels of $190,000 and $420,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars