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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
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 | $200,000 | $200,000 | ||
Variable costs | 80,000 | 50,000 | ||
Contribution margin | 120,000 | 150,000 | ||
Fixed costs | 75,000 | 105,000 | ||
Net income | $45,000 | $45,000 |
(a1) Compute the break-even point in dollars for each company.
Diggs Co. | Doggs Co. | |||
Break-even point | $ | $ |
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