Answered step by step
Verified Expert Solution
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 Noir
The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc Company Noir Company $515,000 $515,000 309,000 257,500 206,000 257,500 185,400 236,900 $20,600 $20,600 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company e Textbook and Media 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 $ 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 e Textbook and Media 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 eg.-45 or parentheses e.g. (45)) Blanc Company Noir Company eTextbook and Media 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 eg.-45 or parentheses eg.(45).) Blanc Company Noir Company
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started