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

		Blanc Company		Noir Company
Sales		$540,000		$540,000
Variable costs		324,000		270,000
Contribution margin		216,000		270,000
Fixed costs		189,000		243,000
Net income		$27,000		$27,000

Part 1

Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.)

		Contribution Margin Ratio
Blanc Company		Enter a dollar amount
Noir Company		Enter a dollar amount

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Part 2

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		$Enter a dollar amount
Noir Company		$Enter a dollar amount

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Part 3

Compute margin of safety ratio for each company. (Round answers to 3 decimal places, e.g. 0.321.)

		Margin of Safety Ratio
Blanc Company		Enter a number
Noir Company		Enter a number

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Part 4

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		Enter a number
Noir Company		Enter a number

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Part 5

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
Sales		$Enter a dollar amount		$Enter a dollar amount
Variable costs		Enter a dollar amount		Enter a dollar amount
Contribution margin		Enter a total of the two previous amounts		Enter a total of the two previous amounts
Fixed costs		Enter a dollar amount		Enter a dollar amount
Net income / (Loss)		$Enter a total amount for this statement		$Enter a total amount for this statement

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Part 6

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
Sales		$Enter a dollar amount		$Enter a dollar amount
Variable costs		Enter a dollar amount		Enter a dollar amount
Contribution margin		Enter a total of the two previous amounts		Enter a total of the two previous amounts
Fixed costs		Enter a dollar amount		Enter a dollar amount
Net income / (Loss)		$Enter a total amount for this statement		$Enter a total amount for this statement