Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures:
Homework Answers
Answer:
| Remo Co. | Angelo Inc. | |
| a) Sales Revenue | $ 460,000.00 | $ 460,000.00 |
| b) Contribution Margin | $ 162,000.00 | $ 251,000.00 |
| c) Contribution Margin Ration (b/a) | 35% | 55% |
| d) Fixed costs | $ 30,000.00 | $ 119,000.00 |
| e) Break even sales revenue (d/c) | $ 85,185.19 | $ 218,087.65 |
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Remo Company and Angelo Inc. are separate companies that operate
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Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are...
Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income Remo Co. $450,000 280,000 $170,000 50,000 $120,000 Angelo Inc. $450,000 215,000 $235,000 115,000 $120,000 Required: Calculate each company's degree of operating leverage. (Round your answers to 3 decimal places.) Remo Co. Angelo Inc. Degree of Operating Leverage
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