Answer Happy

For its top managers, Worldwide Travel formats its income statement as follows: (Click the icon to view the income statement.) Worldwide's relevant range is between sales of $253,000 and $368,000. Read the requirements. Requirement 1. Calculate the contribution margin ratio. Select the labels and enter the amounts to calculate the contribution margin ratio. (Enter the contribution margin ratio as a whole percentage, X%.) Worldwide Travel Contribution Margin Income Statement Three Months Ended March 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs = Requirement 2. Prepare two contribution margin income statements: one at the $253,000 sales level and one at the $368,000 sales level. (Hint: The proportion of each sales dollar that goes toward variable costs is constant within the relevant range.) First prepare the contribution margin income statement at the $253,000 sales level. (Use a minus sign or parentheses for a loss.) Operating Income (Loss) C Contribution margin ratio %

Now prepare the contribution margin income statement at the $368,000 sales level. (Use a minus sign or parentheses for a loss.) Worldwide Travel Contribution Margin Income Statement Three Months Ended March 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income (Loss)

Data table Worldwide Travel Contribution Margin Income Statement Three Months Ended March 31, 2024 Net Sales Revenue $ Variable Costs Contribution Margin Fixed Costs Operating Income Print $ Done 316,500 136,095 180,405 173,000 7,405

Requirements 1. Calculate the contribution margin ratio. 2. Prepare two contribution margin income statements: one at the $253,000 sales level and one at the $368,000 sales level. (Hint: The proportion of each sales dollar that goes toward variable costs is constant within the relevant range.) Print Done - X