Question
Presented below are the CVP income statements for Finch Company and Sparrow Company. They are in the same industry, with the same operating incomes, but
Presented below are the CVP income statements for Finch Company and Sparrow Company. They are in the same industry, with the same operating incomes, but different cost structures.
| Finch Co. | Sparrow Co. | ||||||
| Sales | $164,000 | $164,000 | |||||
| Variable costs | 62,320 | 32,800 | |||||
| Contribution margin | 101,680 | 131,200 | |||||
| Fixed costs | 43,400 | 72,920 | |||||
| Operating income | $58,280 | $58,280 | |||||
(a1) Calculate the break-even point in dollars for each company.
| Break-even point | ||
| Finch Co. | $ | |
| Sparrow Co. | $ |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
