The following CVP income statements are available for Blanc Company and Noir Company.

		Blanc Company		Noir Company
Sales		$570,000		$570,000
Variable costs		342,000		285,000
Contribution margin		228,000		285,000
Fixed costs		218,880		275,880
Net income		$9,120		$9,120

1. 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:

2.

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
Sales		$enter a dollar amount		$enter a dollar amount
Variable costs		enter a dollar amount		enter a dollar amount
Contribution margin		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts
Fixed costs		enter a dollar amount		enter a dollar amount
Net income / (Loss)		$enter a total amount		$enter a total amount

3.

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
Sales		$enter a dollar amount		$enter a dollar amount
Variable costs		enter a dollar amount		enter a dollar amount
Contribution margin		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts
Fixed costs		enter a dollar amount		enter a dollar amount
Net income / (Loss)		$enter a total amount		$enter a total amount