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1A. - Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) b - Compute break-even point in dollars for each comapny. c
1A. - Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.)
b - Compute break-even point in dollars for each comapny.
c - Compute margin safety ratio for each company.
d - compute the degree of perating leverage for each company.
e - Assuming that sales revenue increases by 20%, prepare a cvp income statement for each comapny. sales variable costs constribution margin fixed costs Net income/loss
f - assuming that sales revenue decreases by 20%, prepare a cvp income statement for each company.
The following CVP income statements are available for Blanc Company and Noir Company Blanc Company Sales Variable costs Contribution margin Fixed costs Net income $550,000 302,500 247,500 172,000 $ 75,500 Noir Company_ $550,000 187,000 363,000 287,500 75,500 (al) Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Noir CompanyStep by Step Solution
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