The following CVP income statements are available for Sandhill Company and Wildhorse Company:

		Sandhill Company			Wildhorse Company
Sales revenue		$ 440,000			$ 440,000
Variable costs		220,000			88,000
Contribution margin		220,000			352,000
Fixed costs		170,000			302,000
Operating income		$ 50,000			$ 50,000

Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.)

		Sandhill Company		Wildhorse Company
Break-even point		$ enter a dollar amount rounded to 0 decimal places		$ enter a dollar amount rounded to 0 decimal places
Margin of safety ratio		enter percentages rounded to 2 decimal places	%	enter percentages rounded to 2 decimal places	%

eTextbook and Media

Calculate the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 15.25.)

Sandhill Company	enter an appropriate value rounded to 2 decimal places
Wildhorse Company	enter an appropriate value rounded to 2 decimal places

eTextbook and Media

Assuming that sales revenue increases by 20%, prepare a variable cost income statement for each company.

		Sandhill Company		Wildhorse Company
select an income statement item SalesVariable costsContribution marginFixed costsOperating income		$ enter a dollar amount		$ enter a dollar amount
select an income statement item SalesVariable costsContribution marginFixed costsOperating income		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part SalesVariable costsContribution marginFixed costsOperating income		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select an income statement item SalesVariable costsContribution marginFixed costsOperating income		enter a dollar amount		enter a dollar amount
select a closing name for this statement SalesVariable costsContribution marginFixed costsOperating income		$ enter a total amount for this statement		$ enter a total amount for this statement

eTextbook and Media

Assuming that sales revenue decreases by 20%, prepare a variable cost income statement for each company. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Sandhill Company		Wildhorse Company
select an income statement item SalesVariable costsContribution marginFixed costsOperating income		$ enter a dollar amount		$ enter a dollar amount
select an income statement item SalesVariable costsContribution marginFixed costsOperating income		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part SalesVariable costsContribution marginFixed costsOperating income		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select an income statement item SalesVariable costsContribution marginFixed costsOperating income		enter a dollar amount		enter a dollar amount
select a closing name for this statement SalesVariable costsContribution marginFixed costsOperating income		$ enter a total amount for this statement		$ enter a total amount for this statement

The following CVP Income statements are available for Sandhill Company and Wildhorse Company Sandhill Company Wildhorse Company $ 440.000 Sales revenge $440,000 Variable costs 220,000 BB000 Contribution margin 220,000 352.000 Fixed costs 170,000 302.000 Operating income $50,000 $ 50.000 Calculate the break even point in dollars and the margin of safety ratio for each company (ound break-even point to the nearest whole dollara 5,275 and margin of safety ratio to 2 decimal places, s. 15.25M.) Sandhill Company Wildhorse Company Break-even point $ Margin of satiety ratio e Textbook and Media Calculate the degree of operating leverage for each company. Round answers to decimal places, g 15.25) Sandhill Comar Wildhorse Company Textbook and Media Asuming that sales increases by 20%. prepare a variabile cost income statement for each company Sandi Company Wildhorse Company Assuming that sales revenus decreases by 2018, prepare a wariable cost income statement for each company interlos using either negative sin preceding the numbers, 45 parentheseses (450) Sanchi Company Wildhorse Company