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

Blanc Company

Noir Company

Sales$540,000$540,000Variable costs324,000270,000Contribution margin216,000270,000Fixed costs189,000243,000Net income$27,000$27,000

Part 1

Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.)

Contribution Margin Ratio

Blanc CompanyEnter a dollar amount

Noir CompanyEnter a dollar amount

eTextbook and Media

Part 2

Compute the break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 5,125.)

Break-even Point

Blanc Company$Enter a dollar amount

Noir Company$Enter a dollar amount

eTextbook and Media

Part 3

Compute margin of safety ratio for each company. (Round answers to 3 decimal places, e.g. 0.321.)

Margin of Safety Ratio

Blanc CompanyEnter a number

Noir CompanyEnter a number

eTextbook and Media

Part 4

Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.56.)

Degree of Operating Leverage

Blanc CompanyEnter a number

Noir CompanyEnter a number

eTextbook and Media

Part 5

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 costsEnter a dollar amountEnter a dollar amountContribution marginEnter a total of the two previous amounts

Enter a total of the two previous amounts

Fixed costsEnter a dollar amountEnter a dollar amountNet income / (Loss)$Enter a total amount for this statement

$Enter a total amount for this statement

eTextbook and Media

Part 6

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 costsEnter a dollar amountEnter a dollar amountContribution marginEnter a total of the two previous amounts

Enter a total of the two previous amounts

Fixed costsEnter a dollar amountEnter a dollar amountNet income / (Loss)$Enter a total amount for this statement

$Enter a total amount for this statement

eTextbook and Media