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The following CVP income statements are available for Wildhorse Corp. and Blossom, Inc. Wildhorse Corp. Blossom, Inc. Sales revenue $854,000 $854,000 Variable costs 396,500 228,750
The following CVP income statements are available for Wildhorse Corp. and Blossom, Inc. Wildhorse Corp. Blossom, Inc. Sales revenue $854,000 $854,000 Variable costs 396,500 228,750 Contribution margin 457,500 625,250 Fixed costs 305,000 472,750 Net income $152.500 $152,500 (a) Your answer has been saved. See score details after the due date. Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5) Degree of Operating Leverage Wildhorse 3 Blossom 4.1 (b) Assume that sales revenue decreases by 20%. Prepare a CVP income statement for each company. (Do not round in calculations.)
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