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The CVP income statements shown below are available for Swifty Company and Marigold Company. Swifty Co. Marigold Co. Sales $503.000 $503.000 Variable costs 248.000 46,000
The CVP income statements shown below are available for Swifty Company and Marigold Company. Swifty Co. Marigold Co. Sales $503.000 $503.000 Variable costs 248.000 46,000 Contribution margin 255.000 457.000 Fixed costs 155,000 357,000 Net income $100.000 $100,000 (21) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15.) Degree of Operating Leverage Swifty Marigold (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Swifty Company Marigold Company $ $ $
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