Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are...

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Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income

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Answer 1

Answer #1

Degree of operating leverage(DOL)

= contribution margin/net operating income

DOL of Remo Co. = 170000/120000

= 1.4167 = 1.417

DOL of Angelo Inc. = 235000/120000

= 1.9583 = 1.958

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Answer 2

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