Use the following information to answer #7 and #8 An investment banker is analyzing two companies as possible investment

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Use The Following Information To Answer 7 And 8 An Investment Banker Is Analyzing Two Companies As Possible Investment 1 (47.07 KiB) Viewed 33 times

Use the following information to answer #7 and #8 An investment banker is analyzing two companies as possible investments, but is concerned about the impact that each company's cost structure might have on its profitability. The following CVP income statements are available for Chantal Corp. and Mantle, Inc. Chantal Corp. Mantle, Inc. Sales revenue $700,000 $700,000 Variable costs 350,000 487,500 Contribution margin 350,000 212,500 Fixed costs 225.000 87.500 Net income $125,000 $125,000 If sales decrease by 20% for each company, the impact on net income will be: a decrease of 10% for Chantal and a decrease of 14% for Mantle. O a decrease of 20% for Chantal and a decrease of 20% for Mantle. O a decrease of 56% for Chantal and a decrease of 34% for Mantle, O a decrease of 56% for Chantal and a decrease of 78% for Mantle