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

  

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Universal Travel uses the contribution margin income statement internally. Universal's first quarter results are as follows: Universal's relevant range is sales of between $130,000 and $650,000. Requirement 1. Prepare contribution margin income statements at sales levels of $220,000 and $410,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $220,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Universal Travel Contribution Margin Income Statement Three Months Ended March 31 Data table Sales revenue Less: Variable expenses Contribution margin $ 220,000 A B 1 Universal Travel 2 166,400 Contribution Margin Income Statement Less: Fixed expenses 3 Three Months Ended March 31 Operating income (loss) 4 Sales revenue $ 435,000 5 Less: Variable expenses 152,250 6 Contribution margin 282,750 7 Less: Fixed expenses 166,400 8 Operating income $ 116,350 1. Prepare contribution margin income statements at sales levels of $220,000 and $410,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars. Universal Travel uses the contribution margin income statement internally. Universal's first quarter results are as follows: Universal's relevant range is sales of between $130,000 and $650,000. Requirement 1. Prepare contribution margin income statements at sales levels of $220,000 and $410,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $220,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Universal Travel Contribution Margin Income Statement Three Months Ended March 31 Data table Sales revenue Less: Variable expenses Contribution margin $ 220,000 A B 1 Universal Travel 2 166,400 Contribution Margin Income Statement Less: Fixed expenses 3 Three Months Ended March 31 Operating income (loss) 4 Sales revenue $ 435,000 5 Less: Variable expenses 152,250 6 Contribution margin 282,750 7 Less: Fixed expenses 166,400 8 Operating income $ 116,350 1. Prepare contribution margin income statements at sales levels of $220,000 and $410,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars.

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