For its top managers, Global Travel formats its income statement as follows: GLOBAL TRAVEL Contribution Margin Income

Question:

For its top managers, Global Travel formats its income statement as follows:
GLOBAL TRAVEL
Income Statement
Three Months Ended March 31, 2016
Sales Revenue ....... $ 318,500
Variable Costs.......111,475
......207,025
Fixed Costs ........175,000
Operating Income ....... $ 32,025
Global’s relevant range is between sales of $250,000 and $360,000.
Requirements
1. Calculate the ratio.
2. Prepare two income statements: one at the $250,000 sales level and one at the $360,000 sales level. Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...