1 | Compute Contribution Margin Ratio | ||
Particulars | Contribution Margin Ratio | Formula | |
Blanc Company (194000/485000) | 0.46 | Contribution Margin/Sales | |
Noir Company (242500/485000) | 0.64 | ||
2 | Compute Break Even Point in dollars for each company | ||
Particulars | Break Even Point | Formula | |
Blanc Company | 465600 | (Fixed Cost / Contribution * Sales | |
Noir Company | 469480 | ||
3 | Compute Margin of safety Ratio | ||
Particulars | Margin of Safety Ratio | Formula | |
Blanc Company (485000-465600)/485000 | 0.04 | (Sales- Breakeven Sales)/ Sales | |
Noir Company | 0.032 | ||
4 | Compute degree of Operating Leverage | ||
Particulars | Degree of Operating Leverage | Formula | |
Blanc Company | 25 | (Sales - VC)/ Sales-VC-FC | |
Noir Company | 31.25 | ||
5 | Assume Sales increases by 20% CVP Statement | ||
Particulars | Blanc Company | Noir Company | |
Sales | 582000 | 582000 | |
Variable Cost | 349200 | 291000 | |
Contribution Margin | 232800 | 291000 | |
Fixed Cost | 186240 | 234740 | |
Net Income / Loss | 46560 | 56260 | |
6 | Assume Sales decreases by 20% CVP Statement | ||
Particulars | Contribution Margin | Fixed Cost | |
Sales | 388000 | 388000 | |
Variable Cost | 232800 | 194000 | |
Contribution Margin | 155200 | 194000 | |
Fixed Cost | 186240 | 234740 | |
Net Income / Loss | -31040 | -40740 | |
Problem 19-05A a1-a3, b1, c-d The following CVP income statements are available for Blanc Company and...
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales $485,000 $485,000 Variable costs 291,000 242,500 Contribution margin 194,000 242,500 Fixed costs 186,240 234,740 Net income $7,760 $7,760 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company eTextbook and Media Compute the break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 5,125.) Break-even Point Blanc...
The following CVP income statements are available for Blanc
Company and Noir Company.
Blanc Company
Noir Company
Sales
$470,000
$470,000
Variable costs
282,000
235,000
Contribution margin
188,000
235,000
Fixed costs
169,200
216,200
Net income
$18,800
$18,800
Calculate Contribution margin ratio. (Round answers to
2 decimal places, e.g. 0.32.)
Contribution Margin Ratio
Blanc Company
Noir Company
Compute the break-even point in dollars for each company.
(Round answers to 0 decimal places, e.g.
5,125.)
Break-even Point
Blanc Company
$
Noir Company
$...
*Problem 20-5A The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc Company $ 527,000 295,120 231,880 170,000 $ 61,880 Noir Company $ 527,000 205,530 321,470 259,590 $ 61,880 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company Compute break-even point in dollars for each company. (Round answers to O decimal places, e.g. 1,225.) Break-even Point Blanc...
The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc Company $560,000 336,000 224,000 196,000 $28,000 Noir Company $560,000 280,000 280,000 252,000 $28,000 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company Compute the break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 5,125.) Break-even Point Blanc Company $ $ Noir Company...
The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc Company Noir Company $515,000 $515,000 309,000 257,500 206,000 257,500 185,400 236,900 $20,600 $20,600 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company e Textbook and Media Compute the break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 5,125.) Break-even Point Blanc Company...
The following CVP income statements are available for Blanc Company and Noir Company Blanc Company Noir Company Sales Variable costs Contribution margin Fixed costs Net income $494,000 286,520 207,480 165,000 $42,480 $494,000 192,660 301,340 258,860 $42,480 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company LINK TO TEXT VIDEO: SIMILAR PROBLEM Compute break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 1,225.) Break-even Point Blanc...
The following CVP income statements are available for Blanc Company and Noir Company. Sales Variable costs Contribution margin Fixed costs Net income Blanc Company Noir Company $465.000 $465.000 279,000 232,500 186,000 232,500 178,560 225,060 $7,440 $7,440 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company e Textbook and Media Compute the break-even point in dollars for each company. (Round answers to O decimal places, e.g. 5,125.) Break-even Point Blanc Company...
The following CVP income statements are available for Blanc Company and Noir Company, Sales Variable costs Contribution margin Fixed costs Net income Blanc Company $490,000 294,000 196,000 176,400 $19,600 Noir Company $490,000 245,000 245,000 225,400 $19,600 Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.) Contribution Margin Ratio Blanc Company Noir Company eTextbook and Media Compute the break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 5,125.) Break-even Point Blanc Company $...
The following CVP income statements are available for Blanc Company and Noir Company Sales Variable costs Contribution margin Fixed costs Net income Blanc Company Noir Company $465,000 5465,000 279.000 232.500 186,000 232.500 178,560 225.060 57,440 $7,440 ✓ Your answer is correct. Calculate Contribution margin ratio. (Round answers to 2 decimal places, eg. 0.32.) Contribution Margin Ratio Blanc Company Noir Company 50 e Textbook and Media Your answer is correct. Compute the break-even point in dollars for each company. (Round answers...
The following CVP income statements are available for Blanc
Company and Noir Company.
Blanc Company
Noir Company
Sales
$470,000
$470,000
Variable costs
282,000
235,000
Contribution margin
188,000
235,000
Fixed costs
169,200
216,200
Net income
$18,800
$18,800
Calculate Contribution margin ratio.
Contribution Margin Ratio
Blanc Company
Noir Company
Compute the break-even point in dollars for each company.
(Round answers to 0 decimal places, e.g.
5,125.)
Break-even Point
Blanc Company
$
Noir Company
$
Compute margin of safety ratio for each company....