Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following CVP income statements are available for Blanc Company and Noir Company Sales Variable costs Contribution margin Fixed costs Net income Blanc Company 565,000

image text in transcribedimage text in transcribedimage text in transcribed

The following CVP income statements are available for Blanc Company and Noir Company Sales Variable costs Contribution margin Fixed costs Net income Blanc Company 565,000 339,000 226,000 214,700 11,300 Noir Company 565,000 282,500 282,500 271,200 $11,300 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company eTextbook and Media Compute the break-even point in dollars for each company. (Round answers to 0 decimal places, e-3. 5,125) Break-even Point Blanc Company$ 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.g. 1.56.) Degree of Operating Leverage Blanc Company Noir Company Assuming that sales revenue increases by 20%, prepare a CVP income statement for each com pany number e.g. -45 or parentheses e.g. (45).) Enter negative amounts using either a negative sign preceding the Blanc Company Noir Company Sales Total Fixed Expenses Selling Expenses Administrative Expenses Cost of Goods Sold Contribution Margin Gross Profit Net Income/(Loss) Variable Costs Total Variable Expenses Fixed Costs 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).) Blanc Company Noir Company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Conducting Church Audits A Guide For Internal Auditors

Authors: Jeremy W Odom

1st Edition

0997095628, 978-0997095623

More Books

Students also viewed these Accounting questions