Cost - Volume - Profit Analysis E7-17 Prepare Contribution margin income statements. Western Travel uses the contribution margin income statement internally. Western's first-quarter results are as follows: Western Travel Contribution Margin Income Statement Three months Ended March 31 Sales Revenue.................................................. $500,000 Less Variable expenses................................... $100,000 ____________ Contribution margin....................................... $400,000 Less: Fixed expenses...................................... $174,000 ____________ Operating income........................................... $226,000 Western's relevant range is sales of between $100,000 and $700,000. Requirements: 1. Prepare contribution margin income statements at sales level of $255,000 and $363,000. (Hint: Use the contribution margin Ratio.) 2. Compute breakeven sales in dollars