Western Travel uses the contribution margin income statement internally. Western's first quarter results are as follows:
Western's relevant range is sales of between $ and $
Western Travel
Contribution Margin Income Statement
Three Months Ended March
Sales revenue: $
Less: Variable expenses:
Contribution margin: $
Less: Fixed expenses:
Operating income: $
Prepare contribution margin income statements at sales levels of $ and $
Hint: Use the contribution margin ratio.
Begin by preparing the contribution margin income statement at the $ level. Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.
