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(c) If adultului Noir Company of fir (L P6-5A The following CVP income statements are available for Blanc Company and Noir Company Blanc Company Sales

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(c) If adultului Noir Company of fir (L P6-5A The following CVP income statements are available for Blanc Company and Noir Company Blanc Company Sales $500,000 $500,000 Variable costs 280,000 180,000 Contribution margin 220,000 320,000 t o Fixed costs 170,000 270,000 Bliano Net income $ 50,000 $ 50,000 200 Instructions (a) Compute the break-even point in dollars and the margin of safety ratio (round to 3 places) for each company. (b) Compute the degree of operating leverage for each company and interpret your results. (c) Assuming that sales revenue increases by 20%, prepare a CVP income statement for each company. (d) Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. le) Discuss how the cost structure of these two companies affects their operating leverage and profitability. (a (b

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