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Jamison Travel uses the contribution margin income statement intern (Click the icon to view the income statement.) Jamison's relevant range is sales of between $120,000 and $630,000 Read the requirements

Jamison Travel uses the contribution margin income statement intern (Click the icon to view the income statement.) Jamison's relevant range is sales of between $120,000 and $630,000 Read the requirements

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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Travel uses the contribution margin income statement internally.

 
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Jamison Travel uses the contribution margin income statement internally. Jamison's first quarter results are as follows: (Click the icon to view the income statement.) Jamison's relevant range is sales of between $120,000 and $630,000. Read the requirements Requirement 1. Prepare contribution margin income statements at sales levels of $230,000 and $400,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $230,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Jamison Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss)
Transcribed Image Text:Jamison Travel uses the contribution margin income statement internally. Jamison's first quarter results are as follows: (Click the icon to view the income statement.) Jamison's relevant range is sales of between $120,000 and $630,000. Read the requirements Requirement 1. Prepare contribution margin income statements at sales levels of $230,000 and $400,000. (Hint: Use the contribution margin ratio.) Begin by preparing the contribution margin income statement at the $230,000 level. (Round the variable expense rate to the nearest whole percent. Enter losses with a minus sign or parentheses.) Jamison Travel Contribution Margin Income Statement Three Months Ended March 31 Sales revenue Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (loss)
1 2 A Jamison Travel Contribution Margin Income Statement Three Months Ended March 31 $ 3 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income $ B $ 525,000 210,000 315,000 172,200 142,800 Requirements 1. Prepare contribution margin income statements at sales levels of $230,000 and $400,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars. Print Done
Transcribed Image Text:1 2 A Jamison Travel Contribution Margin Income Statement Three Months Ended March 31 $ 3 4 Sales revenue 5 Less: Variable expenses 6 Contribution margin 7 Less: Fixed expenses 8 Operating income $ B $ 525,000 210,000 315,000 172,200 142,800 Requirements 1. Prepare contribution margin income statements at sales levels of $230,000 and $400,000. (Hint: Use the contribution margin ratio.) 2. Compute breakeven sales in dollars. Print Done
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