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The following CVP income statements are available for Blanc Company and Noir Company. Compute the break-even point in dollars and the margin of safety ratio

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The following CVP income statements are available for Blanc Company and Noir Company. Compute the break-even point in dollars and the margin of safety ratio (round to 3 places) for each company. Compute the degree of operating leverage for each company and interpret your results. Assuming that sales revenue increases by 20%, prepare a CVP income statement for each company. Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. Discuss how the cost structure of these two companies affects their operating leverage and profitability

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