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x eTextbook 30 Chapter 6 Assignment, fall 20 x ch.edubbcswebdav/pid-7486437-dt-content-rid-63335666_1/courses/ACC255-21300-22386337_CR/Chapter%206%20Assignment%2C Compute degree of operating leverage...

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x eTextbook 30 Chapter 6 Assignment, fall 20 x ch.edubbcswebdav/pid-7486437-dt-content-rid-63335666_1/courses/ACC255-21300-22386337_CR/Chapter%206%20Assignment%2C Compute degree of operating leverage and evaluate impact of operatie leverage on financial 15A (L04), AN Writing The following CVP income statements dire available for Blanc Company d Noir Company Blanc Company Noir Company Sales $500,000 $500,000 Variable costs 280,000 180,000 Contribution margin 220,000 320,000 Fixed costs 170.000 270,000 Net income $50,000 $50,000 structions 2. Compute the beak-even point in dollars and the margin of safety ratio (round to 3 places) for cach company b. Compute the degree of operating leverage for each company and interpeet your results c. Assuming that sales revenue increases by 2046, prepare a CVP income statement for each company 2. Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. c. Discuss how the cost structure of these two companies affects their operating leverage and profitability a. BE, Blanc $386,354 BE, Noir $421,875 b. DOL, Blanc 4.4 DOL Noir 6.4 NECESS 80 886 F6 3 5 6 7

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