The following CVP income statements are available for Sheridan Company and Sunland Company: Sheridan Company Sunland Company $365,000 $365,000 182,500 73,000 292,000 242,000 $50,000 Sales revenue Variable costs Contribution margin Fixed costs Operating income 182,500 132,500 $50,000
The following CVP income statements are available for Sheridan Company and Sunland Company: Sheridan Company Sunland Company $365,000 $365,000 182,500 73,000 292,000 242,000 $50,000 Sales revenue Variable costs Contribution margin Fixed costs Operating income 182,500 132,500 $50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Current Attempt in Progress
The following CVP income statements are available for Sheridan Company and Sunland Company.
Sales revenue
Variable costs
Contribution margin
Fixed costs
Operating income
(a)
Your answer is incorrect.
Sheridan Company
$365,000
182,500
182,500
132,500
$50,000
Break-even point
Margin of safety ratio
eTextbook and Media
Save for Later
Sunland Company
$365,000
73,000
Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearest
whole dollar, eg. 5,275 and margin of safety ratio to 2 decimal places, eg. 15.25%)
292,000
Sheridan Company
242,000
$50,000
96
$
Sunland Company
%
2
Attempts: 1 of 3 used
Submit Answer
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