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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 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 $ and $
Read the requirements.
Requirement Prepare contribution margin income statements at sales levels of $ and $Hint:
Use the contribution margin ratio.
Begin by preparing the contribution margin income statement at the $ 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
Sales revenue
Less: Variable expenses
Contribution margin
Less: Fixed expenses
Operating income loss
Data table
Requirements
Prepare contribution margin income statements at sales levels of $
and $Hint: Use the contribution margin ratio.
Compute breakeven sales in dollars.
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