Current Attempt in Progress The CVP income statements shown below are available for Marigold Company and Concord Company. Sales Variable costs Contribution margin Fixed costs Net income Marigold Marigold Co. Concord $497,000 246,000 251,000 151,000 $100,000 10 Concord Co. (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage $497,000 50,000 447,000 347,000 $ $100,000 b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Marigold Company IN Concord Company s 100
Current Attempt in Progress The CVP income statements shown below are available for Marigold Company and Concord Company. Sales Variable costs Contribution margin Fixed costs Net income Marigold Marigold Co. Concord $497,000 246,000 251,000 151,000 $100,000 10 Concord Co. (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage $497,000 50,000 447,000 347,000 $ $100,000 b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Marigold Company IN Concord Company s 100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
The CVP income statements shown below are available for Marigold Company and Concord Company.
Sales
Variable costs
Contribution margin
Fixed costs
Net income
Marigold
Marigold Co. Concord Co.
Concord
$497,000
246,000
251,000
151,000
$100,000
(a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.)
$497,000
50,000
447,000
347,000
$100,000
Degree of Operating Leverage
(b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company.
Marigold Company
Concord Company
JOTUL
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