Question
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales $472,000 $472,000 Variable costs 269,040 169,920 Contribution
The following CVP income statements are available for Blanc Company and Noir Company.
Blanc Company | Noir Company | |||
Sales | $472,000 | $472,000 | ||
Variable costs | 269,040 | 169,920 | ||
Contribution margin | 202,960 | 302,080 | ||
Fixed costs | 172,000 | 271,120 | ||
Net income | $30,960 | $30,960 |
Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.)
Contribution Margin Ratio | ||
Blanc Company |
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Noir Company |
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Compute break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 1,225.)
Break-even Point | ||
Blanc Company | $ | |
Noir Company | $ |
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 |
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Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 1.5.)
Degree of Operating Leverage | ||
Blanc Company |
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Noir Company |
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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). Round answers to 0 decimal places, e.g. 1,225.)
Blanc Company | Noir Company | |||
Sales | $ | $ | ||
Variable costs |
|
| ||
Contribution margin |
|
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Fixed costs |
|
| ||
Net income / (Loss) | $ | $ |
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). Round answers to 0 decimal places, e.g. 1,225.)
Blanc Company | Noir Company | |||
Sales | $ | $ | ||
Variable costs |
|
| ||
Contribution margin |
|
| ||
Fixed costs |
|
| ||
Net income / (Loss) | $ | $ |
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