The document outlines the preparation of a contribution margin income statement at sales levels of $270,000 and $410,000. It calculates breakeven sales and provides an example where sales revenue of $400,000 minus variable expenses of $120,000 results in a contribution margin of $280,000 and an operating income of $109,200. Additionally, it notes that there are images related to the solution that are not viewable.

1. 1.) Prepare contribution margin income statement at sales level of $270,000 and $410,000.
Compute breakeven sales in dollars.
sales revenue $400,000
less: variable expenses $120,000
= contribution margin $280,000
less: $170,000
= Operting income $109,200
Solution
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