Hopper's relevant range is sales of between $100,000 and $640,000. Requirements 1. Prepare contribution margin income statements at sales levels of $200,000 and $420,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars.

E7-40B Prepare contribution margin income statements (Learning Objective 1) Hopper Travel uses the contribution margin income statement internally. Hopper's second-quarter results are as follows: A B C D Hopper Travel 2 Contribution Margin Income Statement W Three Months Ended June 30 4 5 Sales revenue $ 500,000 6 Less: Variable expenses 120,000 7 Contribution margin $ 380,000 8 Less: Fixed expenses 171,000 9 Operating income $ 209,000 10 Hopper's relevant range is sales of between $100,000 and $640,000. Requirements 1. Prepare contribution margin income statements at sales levels of $200,000 and $420,000. (Hint: Use the contribution margin ratio.)