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Airborne's relevant range is sales of between $125,000 and $670,000. Read the requirements. Requirement 1. Prepare contribution margin income statements at sales levels of $180,000 and $430,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $180,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 180,000 54,000 + $ 126,000 178,500 $ (52,500) Operating income (loss) Now prepare the contribution margin income statement at the $430,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ The breakeven sales in dollars is Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) Requirement 2. Compute breakeven sales in dollars. Begin by identifying the formula to compute the breakeven sales in dollars. Operating income ( Fixed expenses Compute breakeven sales in dollars. 430,000 129,000 $ 301.000 178,500 $ 122,500 Y )- Contribution margin ratio = Breakeven sales in dollars Data table A 1 2 3 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ 550,000 165,000 385,000 178,500 $ 206,500 Print $ B Done X

Airborne's relevant range is sales of between $125,000 and $670,000. Read the requirements. Requirement 1. Prepare contribution margin income statements at sales levels of $180,000 and $430,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $180,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ 180,000 54,000 + $ 126,000 178,500 $ (52,500) Operating income (loss) Now prepare the contribution margin income statement at the $430,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ The breakeven sales in dollars is Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) Requirement 2. Compute breakeven sales in dollars. Begin by identifying the formula to compute the breakeven sales in dollars. Operating income ( Fixed expenses Compute breakeven sales in dollars. 430,000 129,000 $ 301.000 178,500 $ 122,500 Y )- Contribution margin ratio = Breakeven sales in dollars Data table A 1 2 3 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ 550,000 165,000 385,000 178,500 $ 206,500 Print $ B Done X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Airborne's relevant range is sales of between $125,000 and $670,000. Read the requirements. Requirement 1. Prepare contribution margin income statements at sales levels of $180,000 and $430,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $180,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ + $ The breakeven sales in dollars is Operating income (loss) Now prepare the contribution margin income statement at the $430,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) Requirement 2. Compute breakeven sales in dollars. Begin by identifying the formula to compute the breakeven sales in dollars. ( Operating income Fixed expenses Compute breakeven sales in dollars. 180,000 54,000 $ 126,000 178,500 (52,500) $ 430,000 129,000 301,000 178,500 122,500 ) = Contribution margin ratio = Breakeven sales in dollars Data table 1 2 3 A Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income Print $ $ B Done - X 550,000 165,000 385,000 178,500 206,500
Transcribed Image Text:Airborne's relevant range is sales of between $125,000 and $670,000. Read the requirements. Requirement 1. Prepare contribution margin income statements at sales levels of $180,000 and $430,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $180,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses $ + $ The breakeven sales in dollars is Operating income (loss) Now prepare the contribution margin income statement at the $430,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss) Requirement 2. Compute breakeven sales in dollars. Begin by identifying the formula to compute the breakeven sales in dollars. ( Operating income Fixed expenses Compute breakeven sales in dollars. 180,000 54,000 $ 126,000 178,500 (52,500) $ 430,000 129,000 301,000 178,500 122,500 ) = Contribution margin ratio = Breakeven sales in dollars Data table 1 2 3 A Airborne Travel Contribution Margin Income Statement Three Months Ended March 31 $ 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income Print $ $ B Done - X 550,000 165,000 385,000 178,500 206,500
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