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 $560,000
The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc Company $560,000 336,000 224,000 196,000 $28,000 Noir Company $560,000 280,000 280,000 252,000 $28,000 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company 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 $ e Textbook 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 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 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 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 > $ $
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