For its top managers,

Neptune

Travel formats its income statement as follows:

1(Click

the icon to view the income statement.)

Neptune's

relevant range is between sales of

$251,000

and

$370,000.

Read the

requirements2.

Requirement 1. Calculate the contribution margin ratio.

Select the labels and enter the amounts to calculate the contribution margin ratio. (Enter the contribution margin ratio as a whole percentage, X%.)

(1)		(2)	=	Contribution margin ratio
			=		%

Requirement 2. Prepare two contribution margin income statements: one at the

$251,000

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.)First prepare the contribution margin income statement at the

$251,000

sales level. (Use a minus sign or parentheses for a loss.)

Neptune Travel
Contribution Margin Income Statement
Three Months Ended March 31, 2024
Net Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income (Loss)

Now prepare the contribution margin income statement at the

$370,000

sales level. (Use a minus sign or parentheses for a loss.)

Neptune Travel
Contribution Margin Income Statement
Three Months Ended March 31, 2024
Net Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income (Loss)

1: Data Table

Neptune Travel
Contribution Margin Income Statement
Three Months Ended March 31, 2024
	Net Sales Revenue	$318,500
	Variable Costs	111,475
	Contribution Margin	207,025
	Fixed Costs	174,000
	Operating Income	$33,025

2: Requirements

1.	Calculate the contribution margin ratio.
2.	Prepare two contribution margin income statements: one at the $251,000 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.)

(1)

Contribution margin

Fixed costs

Mixed costs

Net sales revenue

Operating income

Variable costs

(2)

Contribution margin

Fixed costs

Mixed costs

Net sales revenue

Operating income

Variable costs