The following CVP income statements are available for Blossom Company and Crane Company:Blossom CompanyCrane CompanySales revenue$450,000$450,000Variable costs225,00090,000Contribution margin225,000360,000Fixed costs175,000310,000Operating income$50,000$50,000(a)Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearestwhole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.)Blossom CompanyCrane CompanyBreak-even point$Margin of safety ratio%%

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Answered: The following CVP income statements are…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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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 Attempts: 0 of 1 used Submit Answer
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