Worldwide Travel

Contribution Margin Income Statement

Three months ending March 21,2014

Sales Revenue $317,500.

Variable Costs 95,250.

Contribution Margin 222,250.

Fixed Costs 175,000.

Operating Income 47,250

Relevant range is between sales ofo $245,000. and $364,000.

1. Calculate the contribution margin ratio. 2. Prepare two contribution margin statements: One at the $245,000. range and one at the $364,000. sales level.