E21-35 8 pts total Requirements 1. Compute Graham's monthly breakeven sales in dollars. Use the contribution margin ratio approach. 2. Use contribution margin income statements to compute Graham's monthly operating income or operating loss if revenues are $550,000 and if they are $1,010,000. 3. Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain. Solution: Requirement 1 - 2 pts Requirement 2 - 4 pts For Sales Revenue of $550,000: GRAHAM'S STEEL PARTS Contribution Margin Income Statement