Calculating contribution margin ratio, prepare contribution margin income statements. For its top managers, Global travel formats it's

Question:

Calculating ratio, prepare income statements.
For its top managers, Global travel formats it's income statement as follows:
Global travel
income statement
Three months and it March 31, 2016
Sales revenue $318500
Variable cost $111475
$207025
Fixed cost $175000
Operating income $32025
Global so relevant range is between sales of $250,000 and $360,000.
Requirements
1. Calculate the ratio
2. Prepare to 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...