P6.5 (LO 4), AN Writing The following CVP income statements are available for Blanc SA and verage g Noir SA. Blanc SA Noir SA Sales Variable costs 500,000 500,000 280,000 180,000 Contribution margin 220,000 320,000 Fixed costs 170,000 270,000 Net income 50,000 50,000 Instructions a. Compute the break-even point 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. e. Discuss how the cost structure of these two companies affects their operating leverage and profitability