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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

image text in transcribedimage text in transcribedimage text in transcribed 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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