Aussie Travel uses the contribution margin income statement internally. Aussie's first quarter results are as follows: B (Click the icon to view the income statement.) Aussie's relevant range is sales of between $140,000 and $670,000. Read the requirements. Requirement 1. Prepare contribution margin income statements at sales levels of $220,000 and $420,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $220,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Aussie Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue $ 220,000 Less: Variable expenses 66,000 Contribution margin $ 154,000 Less: Fixed expenses 178,500 $ (24,500) Operating income (loss) Now prepare the contribution margin income statement at the $420,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Aussie Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) 1. Prepare contribution margin income statements at sales levels of $220,000 and $420,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars. A B 3 1 Aussie Travel 2 Contribution Margin Income Statement 3 Three Months Ended March 31 4 Sales revenue $ 550,000 5 Less: Variable expenses 165,000 6 Contribution margin $ 385,000 7 Less: Fixed expenses 178,500 $ 8 Operating income 206,500