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

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

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

Northern Travel

Contribution Margin Income Statement

Three Months Ended March 31

Sales revenue

$525,000

Less: Variable expenses

210,000

Contribution margin

$315,000

Less: Fixed expenses

172,200

Operating income

$142,800

Northern's relevant range is sales of between $ 140 comma 000 and $ 660 comma 000.

1.

Prepare contribution margin income statements at sales levels of

$ 250 comma 000$250,000

and

$ 450 comma 000$450,000.

(Hint:

Use the contribution margin ratio.)

2.

Compute breakeven sales in dollars.

business accounting

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