Worldwide Travel uses the contribution margin income statement internally. Worldwide's first quarter results are as follows: Worldwide
Question:
Worldwide Travel uses the contribution margin income statement internally. Worldwide's first quarter results are as follows:
Worldwide Travel
contribution margin Income Statement
Three Months Ended March 31
Sales revenue.......................................................................................... $316,500
Less: Variable expenses.......................................................................... 126,600
contribution margin.............................................................................. $189,900
Less: Fixed expenses............................................................................... 174,000
Operating income...................................................................................$ 15,900
Worldwide's relevant range is sales of between $100,000 and $700,000.
Requirements
1. Prepare contribution margin income statements at sales levels of $220,000 and $361,000.
2. Compute breakeven sales in dollars.
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Step by Step Answer:
Req 1 Worldwide Travel Contribution Margin Income Statements Sales revenue 2...View the full answer
