Western Travel uses the contribution margin income statement internally. Western's first quarter results are as follows:

$($Click the icon to view the income statement.$)$

Western's relevant range is sales of between $$125,000$ and $$680,000.$

Read the requirements.

Requirement $1.$ Prepare contribution margin income statements at sales levels of $$200,000$ and $$470,000.($Hint:

Use the contribution margin ratio.$)$

Begin by preparing the contribution margin income statement at the $$200,000$ level. $($Round the variable expense

rate to the nearest whole percent. Enter losses with a minus sign or parentheses.$)$

Western Travel

Contribution Margin Income Statement

Three Months Ended March $31$

Sales revenue

Less: Variable expenses

Contribution margin

Less: Fixed expenses

Operating income $($loss$)$