World Wide Travel-Traditional Income Statement for Year Ended May 31, 2020 Sales Revenue Cost of Goods Sold $317,500 Variable costs Fixed costs Total Cost of Goods Sold Gross Profit Less Selling, General & Admin Expenses (SG&A) Variable SG&A expenses Fixed SG&A expenses ($40,000) ($55,250) ($95,250) $222,250 ($55,250) (119,750) $47.250 Operating Income Required: 1. Redraft (or Change) the above traditional income statement into a contribution margin income statement format, and calculate the contribution margin, and the contribution margin ratio (5 points). 2. Prepare two contribution margin income statements: one at the $245,000 sales level and another at the $364,000 sales level (3 points x 2 = 6 points). 3. Calculate the breakeven point first, and second explain the reason why the company is making a loss if the sales are $245,000 (2 points x 2 = 4 points).