Prepare contribution margin income statements (Learning Objective 1)}

Aussie Travel uses the contribution margin income statement internally. Aussie's firstquarter results are as follows:

Aussie's relevant range is between sales of \(\$ 250,000\) and \(\$ 360,000\).
\section*{Requirements}
1. Prepare contribution margin income statements at sales levels of \(\$ 250,000\) and \(\$ 360,000\). (Hint: Use the contribution margin ratio.)
2. Compute breakeven sales in dollars.

Transcribed Image Text:

Sules revenue. AUSSIE TRAVEL Contribution Margin Income Statement Three Months Ended March 31, 2007 Less: Variable expenses.... Contribution margir Less: Fixed expenses..... Operating income...... 5 312,500 (125,000) 187,500 (170,000) $ 17,500