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there is another solution of this question in chegg with another numbers. how can you say there is no enough info? dol has a formula
there is another solution of this question in chegg with another numbers. how can you say there is no enough info? dol has a formula also, this is not find with only sales changes. are you sure you are an expert?
1. The following CVP income statements are available for Viejo Company and Nuevo Company. Viejo Company Nueve Company Sales Variable costs Contribution margin Fixed costs Operating income $500,000 280,000 220,000 180,000 $ 40,000 5500,000 180,000 320,000 280,000 S 40,000 (a) Compute the break-even point in dollars and the margin of safety ratio for each company (b) Compute the degree of operating leverage for each company (c) Assuming that sales revenue increases by 200% prepare a CVP income statement for each company (d) Assuming that sales revenue decreases by 20%, calculate the operatig incomes of the two companies without preparing income statementStep by Step Solution
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