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Gilbert's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $650,000 and a contribution margin of 85% of revenues. Read the requirements. Requirement 1. Compute Gilbert's Steel Parts' monthly breakeven sales in dollars. Begin by identifying the formula Fixed expenses Operating Income 14 Contribution margin ratio = Breakeven sales in dollars + Compute Gilbert's Steel Parts' monthly breakeven sales in dollars. (Round your answer up to the nearest whole number.) The breakeven sales dollars is 764,706 Requirement 2. Use the contribution margin ratio to project operating income (or loss) if revenues are $500,000 and if they are $1,010,000. First, select the labels to calculate projected operating income. Then, calculate projected income (or loss) if revenues are $500,000. Finally, calculate projected income (or loss) if revenues are $1,010,000. (Enter the contribution margin ratio as a whole percent. Enter losses with a minus sign or parentheses.) @ Requirements Gilbert's Steel Parts Operating Income Projection at Different Sales Levels 1. Compute Gilbert's Steel Parts' monthly breakeven sales in dollars. 2. Use the contribution margin ratio to project operating income (or loss) if revenues are $500,000 and if they are $1,010,000 3. Do the results in Requirement 2 make sense given the breakeven sales you computed in Requirement 1? Explain. x Print Done Operating Income (loss)

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