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Question 2 The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc
Question 2 The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc Company Noir Company $515,000 $515,000 257,500 257,500 236,900 $20,600 309,000 206,000 185,400 $20,600 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company eTextbook and Media Compute the break-even point in dollars for each company. (Round answers to O decimal places, e.g. 5,125.) Break-even Point Blanc Company $ Noir Company eTextbook and Media 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 eTextbook and Media Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.. 1.56.) Degree of Operating Leverage Blanc Company Noir Company eTextbook and Media Assuming that sales revenue increases 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).) Blanc Company Noir Company eTextbook and Media
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