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

Worldwide Travel

contribution margin Income Statement

Three Months Ended March 31

Sales revenue.......................................................................................... $316,500

Less: Variable expenses.......................................................................... 126,600

contribution margin.............................................................................. $189,900

Less: Fixed expenses............................................................................... 174,000

Operating income...................................................................................$ 15,900

Worldwide's relevant range is sales of between $100,000 and $700,000.

Requirements

1. Prepare contribution margin income statements at sales levels of $220,000 and $361,000.

2. Compute breakeven sales in dollars.