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The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales $475,000 $475,000 Variable costs 285,000 237,500 Contribution

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

Blanc Company

Noir Company

Sales $475,000 $475,000
Variable costs 285,000 237,500
Contribution margin 190,000 237,500
Fixed costs 166,250 213,750
Net income $23,750 $23,750
alculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.)

Contribution Margin Ratio

Blanc Company

Noir Company

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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 $

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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 2 decimal places, e.g. 1.56.)

Degree of Operating Leverage

Blanc Company

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).)

Blanc Company

Noir Company

$

$

$

$

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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

$

$

$

$

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