ALT-BE-REVENUE Choose Exercise: (1-5) El: Challen Company had fixed costs of $180,000 and a contribution margin ratio of 56.25%. 1. How much revenue must Challen earn, in order to break even? Hint: BE Revenue = FC/CM Ratio 0 H Create a contribution income statement to prove that your breakeven point is correct. REVENUE - VARIABLE COSTS CONTRIBUTION MARGIN - FIXED COSTS OPERATING INCOME H0000 Suppose that Challen wishes to earn an operating income of $90,000 2. How much revenue must Challen earn to generate this operating income? Hint: Revenue Required = 0 H Create a contribution income statement to prove your answer in part 2. REVENUE - VARIABLE COSTS CONTRIBUTION MARGIN - FIXED COSTS OPERATING INCOME 00000