E6-16 (Static) Calculating Degree of Operating Leverage (LO 6-5) Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variab 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. $275,000 200,000 $ 75,000 35,000 $ 40,000 Angelo Ing. $275,000 125,000 $150,000 110,000 $ 40,000 Required: Calculate each company's degree of operating leverage. (Round your answers to 3 decimal places.) Remo Co Angelo Inc Degree of Operating Leverage