Problem 19-5A

The following CVP income statements are available for Blanc Company and Noir Company.

$539000 $539000

312000 188650

226380 350350

171000 294970

55380 55380

Calculate contribution margin ratio

Compute break even point in dollars for each company

Compute margin of safety ratio for each company

Compute the degree of operating leverage for each company

Assuming that sales revenue increases by 20%, prepare a CVP income statement for each company.

Assuming the sales revenue decreases by 20%, prepare a CVP income statement for each company.

Problem 19-5A The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales Variable costs Contribution margin Fixed costs Net income $539,000 312,620 226,380 171,000 $55,380 $539,000 188,650 350,350 294,970 $55,380 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company LINK TO TEXT VIDEO: SIMILAR PROBLEM CALCULATOR | FULL SCREEN PRINTER VER Compute break-even point in dollars for each company. (Round answers to o declmal places, e.g. 1,225.) Break-even Point Blanc Company Noir Company LINK TO TEXT VIDEO: SIMILAR PROBLEM Compute margin of safety ratio for each company, (Round answers to 3 decimal places, e.g. 0.321.) Margin of Safety Ratio Blanc Company Noir Company LINK TO TEXT VIDEO: SIMILAR PROBLEM Compute the degree of operating leverage for each company. (Round answers to I decimal place, e.g. 1.5. Degree of Operating Leverage Blanc Company Noir Company Assuming that sales revenue increases by 20%, prepare a CVP income statement for each company. (Enter negative amounts using either a negative sign precedling the number e.g. -4S or parentheses e.g. (45). Round answers to o decimal places, e.g. 1,225.) e.g. 1,22s. Blanc Company Nolr Company Sales Variable costs Fixed costs Net income / (Loss) LINK TO TEXT VIDEO SIMELAR PROBLEM Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to o decmal places, e.g. 1,225.) Blanc Company Noir Company Sales Variable costs Contribution margin Fixed costs Net income/ (Loss) s Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEOI SEMILAR PROBLEN