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The CVP income statements shown below are available for Billings Company and Bozeman Company. Billings Co. Bozeman Co. Sales revenue $600,000 $600,000 Variable costs 280,000
The CVP income statements shown below are available for Billings Company and Bozeman Company. Billings Co. Bozeman Co. Sales revenue $600,000 $600,000 Variable costs 280,000 80,000 Contribution margin 320,000 520,000 Fixed costs 170,000 370,000 Net income $150,000 $150,000 Compute the degree of operating leverage for each company. (Round answer to 3 decimal places, e.g. 1.150.) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Sales Variable costs Contribution margin Fixed costs Net incom
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