Presented on the next page are variable costing income statements for Logan Company and Morgan Company. They are in the same industry, with the same net incomes, but different cost structures.

Logan Co. Morgan Co.
Sales $200,000 $200,000 Variable costs 80,000 50,000 Contribution margin 120,000 150,000 Fixed costs 60,000 90,000 Net income $ 60,000 $ 60,000 Compute the break-even point in dollars for each company and comment on your findings.AppendixLO1