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Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing
Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing their different cost structures:
Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income 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. $315,000 225,000 $ 90,000 45,000 $ 45,000 Angelo Inc. $315,000 140,000 $175,000 130,000 $ 45,000 Required: Calculate each company's degree of operating leverage. (Round your answers to 3 decimal places.) Remo Co. Angelo Inc. Degree of Operating LeverageStep by Step Solution
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