Brief Exercise 19-14 a1

Presented below are variable costing income statements for Diggs Company and Doggs Company. They are in the same industry, with the same net incomes, but different cost structures.

		Diggs Co.		Doggs Co.
Sales		$213,000		$213,000
Variable costs		85,200		42,600
Contribution margin		127,800		170,400
Fixed costs		82,800		125,400
Net income		$45,000		$45,000

(a1) Compute the break-even point in dollars for each company.

		Diggs Co.		Doggs Co.
Break-even point		$		$