The following CVP income statements are available for Blanc Company and Noir Company.
Blanc Company Noir Company
Sales $450,000 $450,000
Variable costs 270,000 225,000
Contribution margin 180,000 225,000
Fixed costs 162,000 207,000
Net income $18,000 $18,000
1. Compute the break-even point in dollars for each company.
2. Compute margin of safety ratio for each company.
3. Compute the degree of operating leverage for each company.
Solved
Show answers
More tips
- H Health and Medicine What to Do If You Are Bitten by a Dog?...
- A Animals and plants How ants survive winter: exploring the secrets of their winter life...
- F Food and Cooking Discover How to Properly Prepare Dough for Rasstegai...
- P Philosophy Unidentified Flying Object - What is the Nature of this Phenomenon?...
- F Family and Home Protect Your Home or Apartment from Pesky Ants...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
Answers on questions: Business
- B Business The total factory overhead for Bardot Marine Company is budgeted for the year at $820,850, divided into four activities: fabrication, $441,000; assembly, $152,000; setup, $122,850;...
- B Business Assume that the relationship between test scores and the student-teacher ratio can be modeled as a linear function with an intercept of 698.9 and a slope of (-2.28). A decrease...
- B Business ¿QUÉ TRÁMITES TIENE QUE REALIZAR UN AUTÓNOMO PARA EMPEZAR SU ACTIVIDAD?...
- B Business ¿LA LEY EXIGE AL AUTÓNOMO ALGÚN CAPITAL PARA EMPEZAR LA ACTIVIDAD?...
- B Business Which are the best examples of costs that should be considered when creating a project budget?...
- B Business A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief, positive story about how fellow members have helped...
- B Business Several industries have recently switched at least partly from older technologies powered by fossil fuels to new technology powered by electricity. It is thus evident that less...
- B Business Suppose that on January 1, the cost of borrowing French francs for the year is 18%. During the year, U.S. inflation is 5%, and French inflation is 9%. At the same time, the exchange...
- B Business Suppose you have $1,000,000 today and starting a year from now you intend to spend this money over the next 30 years. Assume the nominal rate of interest is 9.2%, inflation rate...
- B Business Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North...
Ответ:
Answer and Explanation:
The computation is shown below:
As we know that
Contribution Margin Ratio is
= contribution margin ÷sales
For Blanc Company
= 180000 ÷ 450000
= 0.40
For Noir Company
= 225000 ÷ 450000
= 0.50
a.
Break-even point = Fixed Costs ÷ Contribution Margin Ratio
For Blanc Company
= 162000 ÷ 0.40
= $405,000
For Noir Company
= $207000 ÷ 0.50
= $414000
2.
Margin of Safety Ratio = (Actual Sales - Break-even Sales) ÷ Actual Sales
For Blanc Company
= (450000 - 405000) ÷ 450000
= 10%
For Noir Company
= (450000 - 414000) ÷ 450000
= 8%
3.
Degree of Operating Leverage = Contribution Margin ÷ Net Income
For Blanc Company
= 180000 ÷ 18000
= 10
For Noir Company
= 225000 ÷ 18000
= 12.5
Ответ:
Im on a private jet eating popeyes chicken, i be flexing like im eating popeyes spinach
Explanation:
plato users