Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company $480,000 $480,000 Sales 288,000 240,000 Variable costs Contribution

image text in transcribed
image text in transcribed
image text in transcribed
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company $480,000 $480,000 Sales 288,000 240,000 Variable costs Contribution margin 192,000 240,000 Fixed costs 182,400 230,400 Net income $9,600 $9,600 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 O decimal places, e.g. 5,125) Compute the break-even point in dollars for each company. (Round answers to decimal places, e.g. 5,125.) 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 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 negati number e.g. -45 or parentheses e.g. (45).) Blanc Company Noir Company Sales $ Variable costs Contribution margin 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 number e.g. -45 or parentheses e.g. (45).) Blanc Company Noir Company Sales $ $ Variable costs Contribution margin Fixed costs Net Income/(Loss) $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Develop clear policy statements.

Answered: 1 week ago

Question

Draft a business plan.

Answered: 1 week ago

Question

Describe the guidelines for appropriate use of the direct plan.

Answered: 1 week ago