Reference no: EM131880652

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

Western Travel Contribution Margin Income Statement

Three Months Ended March 31

Sales Revenue--------------------------------------------------------------------------$500,000

Less: Variable expenses--------------------------------------------------------------100,000

Contribution margin-----------------------------------------------------------------$400,000

Less: Fixed expenses------------------------------------------------------------------174,000

Operating income-------------------------------------------------------------------- $226,000

Western's relevant range is sales of between $100,000 and $700,000.

Prepare contribution margin income statements at sales levels of $255,000 and $363,000.

Compute breakeven sales in dollars.