Laurel Company and Hardy 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:

Required:

1. Briefly describe the similarities and differences in these two companies.

2. Calculate the break-even sales dollars for each company.

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Sales Variable Costs Contribution Margin Fixed Costs Net Income Laurel Co. $275,000 185,000 90,000 35,000 $ 55,000 Hardy Inc. $275,000 125,000 150,000 95,000 $ 55,000