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1. The following CVP income statements are available for ABC Company and XYZ Company. S I C F C (a) Compute the break-even point in
1. The following CVP income statements are available for ABC Company and XYZ Company. S I C F C (a) Compute the break-even point in dollars and the margin of safety ratio for each company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without preparing income statement. (Use DOL) 1. The following CVP income statements are available for ABC Company and XYZ Company. S I C F C (a) Compute the break-even point in dollars and the margin of safety ratio for each company. (b) Compute the degree of operating leverage for each company. (c) Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. (d) Assuming that sales revenue increases by 20%, calculate the operating incomes of the two companies without preparing income statement. (Use DOL)
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