1.22

First Nations Travel uses the contribution margin income statement for internal decision-making. The following is taken from their last quarter of operations where they sold 2,200 trips: First Nations Travel Contribution Margin Income Statement For the Quarter Ending March 31 Sales Revenue $ 670,000 Less: Variable Costs (128,000) Contribution Margin $ 542,000 Less: Fixed Costs $ (388,000) Operating Income $ 154,000 Based on the above information (assume fixed costs remain the same), what sales revenue level (in dollars) would the company need in the next quarter to see a before-tax operating income of $200,000? Their tax rate is 35%. A. First Nations Travel would need to earn $716,000 in revenue. B. First Nations Travel would need to earn $726,863 in revenue. O C. First Nations Travel would need to earn $859,984 in revenue. D. First Nations Travel would need to sell 2,386 trips. O E. First Nations Travel would need to earn $735,000 in revenue