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Northern Travel uses the contribution margin income statement internally. Northern's first-quarter results follow. (Click the icon to view the income statement.) Northem's relevant range
Northern Travel uses the contribution margin income statement internally. Northern's first-quarter results follow. (Click the icon to view the income statement.) Northem's relevant range is between sales of $110,000 and $720,000. Requirements 1. Prepare contribution margin income statements at sales levels of $160,000 and $620,000. (Hint: Use the contribution margin ratio.) 2. Compute break-even sales in dollars. Less: Fixed expenses Operating income (loss) (94,000) Prepare the contribution margin income statement at the $620,000 level. (Round interim percentages to the nearest whole percent. Enter losses with a min sign or parentheses.) Northern Travel Contribution Margin Income Statement Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss)
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