Presented below are the CVP income statements for Finch Company and Sparrow Company. They are in the same industry, with the same operating incomes, but different cost structures.

Calculate the break-even point in dollars for each company and comment on your findings.

Transcribed Image Text:

Sales Variable costs Contribution margin Fixed costs Operating income Finch Co. $200,000 80,000 120,000 60,000 $ 60,000 Sparrow Co $200,000 50,000 150,000 90,000 60,000