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Complete questions a 1 and b please The single-column CVP income statements shown below are available for Wildhorse Company and Blossom Company. Sales Variable costs
Complete questions a and b please
The single-column CVP income statements shown below are available for Wildhorse Company and Blossom Company. Sales Variable costs Contribution margin Fixed costs Net income Wildhorse Co. $495,000 239.000 256,000 156.000 $100,000 Blossom Co. $495,000 51,000 444,000 344,000 $100,000 (at) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. I. 15.) Degree of Operating Leverage Wildhorse Blossom (b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single- olumn CVP income statement for each company. Wildhorse Company Blossom Company
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