The following CVP income statements are available for Sunland Company and Carla Vista Company: Sunland Company Carla Vista Company Sales revenue $370,000 $370,000 Variable costs 222,000 74,000 Contribution margin 148,000 296,000 Fixed costs 98,000 246,000 Operating 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 nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.) Sunland Company Carla Vista Company Break-even point $ $ Margin of safety ratio de % %
The following CVP income statements are available for Sunland Company and Carla Vista Company: Sunland Company Carla Vista Company Sales revenue $370,000 $370,000 Variable costs 222,000 74,000 Contribution margin 148,000 296,000 Fixed costs 98,000 246,000 Operating 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 nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.) Sunland Company Carla Vista Company Break-even point $ $ Margin of safety ratio de % %
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
Related questions
Question
![The following CVP income statements are available for Sunland Company and Carla Vista Company:
Sunland Company
Carla Vista Company
Sales revenue
$370,000
$370,000
Variable costs
222,000
74,000
Contribution margin
148,000
296,000
Fixed costs
98,000
246,000
Operating 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
nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.)
Sunland Company
Carla Vista Company
Break-even point
$
$
Margin of safety ratio
de
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc11863-b2d0-4a2a-9385-23bf37af2415%2Fa8bb7cfa-da57-40ee-834e-84c82f4b9e47%2Fyzh95lj_processed.png&w=3840&q=75)
Transcribed Image Text:The following CVP income statements are available for Sunland Company and Carla Vista Company:
Sunland Company
Carla Vista Company
Sales revenue
$370,000
$370,000
Variable costs
222,000
74,000
Contribution margin
148,000
296,000
Fixed costs
98,000
246,000
Operating 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
nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.)
Sunland Company
Carla Vista Company
Break-even point
$
$
Margin of safety ratio
de
%
%
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