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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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