For its top managers, Aussie Travel formats its income statement as follows:

Aussie Travel
Contribution Margin Income Statement
Three Months Ended March 31, 2016
	Net Sales Revenue	$318,500
	Variable Costs	111,475
	Contribution Margin	207,025
	Fixed Costs	175,000
	Operating Income	$32,025

Aussie's relevant range is between sales of $245,000 and $370,000.

Requirements:

1. Calculate the contribution margin ratio.

2. Prepare the two contribution margin income statements: one at the $245,000 sales level and one at the $370,000 sales level. (Hint: The proportion of each sales dollar that goes toward variable costs is constant within the relevant range.)