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The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales $530,000 $530,000 Variable costs 318,000 265,000 Contribution
The following CVP income statements are available for Blanc Company and Noir Company.
| Blanc Company | Noir Company | |||
| Sales | $530,000 | $530,000 | ||
| Variable costs | 318,000 | 265,000 | ||
| Contribution margin | 212,000 | 265,000 | ||
| Fixed costs | 203,520 | 256,520 | ||
| Net income | $8,480 | $8,480 |
Compute margin of safety ratio for each company.
| Margin of Safety Ratio | ||
| Blanc Company | ||
| Noir Company |
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