Question

CountrywideCountrywide

Travel uses the contribution margin income statement internally.

Countrywide'sCountrywide's

first quarter results are as​ follows:

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​(Click the icon to view the income​ statement.)

Countrywide'sCountrywide's

relevant range is sales of between

$ 140 comma 000$140,000

and

$ 640 comma 000$640,000.

Read the requirements

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.

Requirement 1. Prepare contribution margin income statements at sales levels of

$ 210 comma 000$210,000

and

$ 390 comma 000$390,000.

​(​Hint:

Use the contribution margin​ ratio.)Begin by preparing the contribution margin income statement at the

$ 210 comma 000$210,000

level. ​(Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or​ parentheses.)

Countrywide Travel
Contribution Margin Income Statement
Three Months Ended March 31
	Sales revenue
	Less: Variable expenses
	Contribution margin
	Less: Fixed expenses
	Operating income (loss)

Countrywide Travel

Contribution Margin Income Statement

Three Months Ended March 31

Sales revenue

$500,000

Less: Variable expenses

120,000

Contribution margin

$380,000

Less: Fixed expenses

171,000

Operating income

$209,000Requirements:

Prepare contribution margin income statements at sales levels of $ 210 comma 000$210,000 and $ 390 comma 000$390,000. ​(​Hint: Use the contribution margin​ ratio.)
2.	Compute breakeven sales in dollars.

Answer 1