The CVP income statements shown below are available for Blossom Company and Crane Company. Sales revenue Variable costs Contribution margin Fixed costs Operating income (a1) Blossom Co. Blossom Co. $600,000 320,000 Crane Co. 280,000 180,000 $100,000 Calculate the degree of operating leverage for each company. (Round answer to 2 decimal places, e.g. 15.25.) Crane Co. $600,000 120,000 480,000 380,000 $100,000 Operating leverage

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The CVP income statements shown below are available for Blossom Company and Crane Company.
Blossom Co.
$600,000
320,000
Sales revenue
Variable costs
Contribution margin
Fixed costs
Operating income
(a1)
Blossom Co.
Calculate the degree of operating leverage for each company. (Round answer to 2 decimal places, e.g. 15.25.)
Crane Co.
280,000
180,000
$100,000
Save for Later
Crane Co.
$600.000
120,000
480,000
380,000
$100,000
Operating leverage
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Transcribed Image Text:The CVP income statements shown below are available for Blossom Company and Crane Company. Blossom Co. $600,000 320,000 Sales revenue Variable costs Contribution margin Fixed costs Operating income (a1) Blossom Co. Calculate the degree of operating leverage for each company. (Round answer to 2 decimal places, e.g. 15.25.) Crane Co. 280,000 180,000 $100,000 Save for Later Crane Co. $600.000 120,000 480,000 380,000 $100,000 Operating leverage Attempts: 0 of 1 used Submit Answer
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