Gilbert's Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $$640,220$ and a contribution margin of $85\%$ of revenues.

Read the requirements.

Requirement $1.$ Compute Gilbert's monthly breakeven sales in dollars. Use the contribution margin ratio approach.

Select the labels and enter the amounts to calculate the breakeven point in dollars using the contribution margin approach. $($Enter a $"0"$ for any zero amounts. Round your answer to the nearest dollar. Abbreviation used: $CM=$ contribution margin.$)$

Gilbert's Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $$640,220$ and a contribution margin of $85\%$ of revenues.

Read the requirements.

Requirement $1.$ Compute Gilbert's monthly breakeven sales in dollars. Use the contribution margin ratio approach.

Select the labels and enter the amounts to calculate the breakeven point in dollars using the contribution margin approach. $($Enter a $"0"$ for any zero amounts. Round your answer to the nearest dollar. Abbreviation used: $CM=$ contribution margin.$)$

$\backslash$table$[[(,$Fixed costs,$+,$Target profit,$),$CM ratio,$=,$Required sales in dollars$],[$$$,640,220,+$$$,0,),85\%,=,753,200]]$

Requirement $2.$ Use contribution margin income statements to compute Gilbert's monthly operating income or operating loss if revenues are $$500,000$ and if they are $$1,050,000.$

Begin by selecting the labels for the contribution margin income statement. Then enter the amounts and calculate operating income or loss when revenues are $$500,000.$ Then in the next step, calculate operating income or loss when revenues are $$1,050,000.($Use a minus sign or parentheses for a loss.$)$

Gilbert's Steel Parts

Contribution Margin Income Statement

Revenues are

$$500,000$

Contribution Margin