Compute degree of opera P6-5A The following CVP income statements are available for Blanc Company and Noir leverage and evaluate im of operating leverage on financial results. Company Sales Variable costs Contribution margin Fixed costs Net income Blanc Company $500,000 280,000 220,000 170,000 50,000 Noir Company $500,000 180,000 320,000 270,000 $ 50,000 (LO 4), AN Instructions (a) Compute the break-even point in dollars and the margin of safety ratio (round to (a) BE, Blanc $386,364 3 places) for each company. BE, Noir $421,875 (b) Compute the degree of operating leverage for each company and interpret your results. (b) DOL, Blanc 4.4 (c) Assuming that sales revenue increases by 20%, prepare a CVP income statement for (d) Assuming that sales revenue decreases by 20%, prepare a CVP income statement for e)Discuss how the cost structure of these two companies affects their operating DOL, Noir 6.4 each company. each company. leverage and profitability