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For its top managers, Airborn Travel formats its income statement as follows:

Airborn Travel
Contribution Margin Income Statement
Three Months Ended March 31, 2016
	Net Sales Revenue	$313,500
	Variable Costs	125,400
	Contribution Margin	188,100
	Fixed Costs	171,000
	Operating Income	$17,100

Airborn's relevant range is between sales of $256,000 and $362,000.

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%.)

	/		=	Contribution margin ratio
	/		=		%

Requirement 2. Prepare two contribution margin income statements: one at the $256,000 sales level and one at the $362,000 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 $256,000 sales level. (Use a minus sign or parentheses for a loss.)

Airborn Travel
Contribution Margin Income Statement
Three Months Ended March 31, 2016
Net Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income (Loss)

Now prepare the contribution margin income statement at the $362,000 sales level. (Use a minus sign or parentheses for a loss.)

Airborn Travel
Contribution Margin Income Statement
Three Months Ended March 31, 2016
Net Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income (Loss)

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