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Presented below are the CVP income statements for Sunland Company and Carla Vista Company. They are in the same industry, with the same operating incomes,
Presented below are the CVP income statements for Sunland Company and Carla Vista Company. They are in the same industry, with the same operating incomes, but different cost structures. Sunland Co. Carla Vista Co. Sales $188,000 $188,000 Variable costs 75,200 47,000 Contribution margin 112,800 141,000 Fixed costs 56,400 84,600 Operating income $56,400 $56,400 a) Calculate the break-even point in dollars for Sunland Co. b) Calculate the level of Sales in dollars if Carla Vista Co. wants to earn $500,000 in operating income before taxes *** You are required to upload on Blackboard your step-by-step calculation. Uploading just the final answer won't be graded! Electronic files won't be accepted. Messy work won't be graded. Remember this is a midterm exam. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Open Sans 10pt
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