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.
_______________________ Finch Co. _________ Sparrow Co.
Sales ........................... $150,000 ................... $ 150,000
Variable costs .................. 60,000 ........................ 15,000
Contribution margin ........... 90,000 ...................... 135,000
Fixed costs ...................... 50,000 ....................... 95,000
Operating income ............. $ 40,000 ................... $ 40,000
Calculate the break-even point in dollars for each company and comment on your findings?