Gordon's Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $680,000 and a contribution margin of 80% of revenues. Read the requirements. Requirements - X atio 1. Compute Gordon's monthly breakeven sales in dollars. Use the contribution margin ratio approach. on margin ed: CM = 2. Use contribution margin income statements to compute Gordon's monthly operating income or operating loss if revenues are $520,000 and if they are $1,040,000. 3. Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain. ncome or Print Done ck answer eo