Question
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 Co. | Angelo Inc. | ||||
| Sales revenue | $ | 450,000 | $ | 450,000 | |
| Less: Variable cost | 280,000 | 215,000 | |||
| Contribution margin | $ | 170,000 | $ | 235,000 | |
| Less: Fixed cost | 50,000 | 115,000 | |||
| Net operating income | $ | 120,000 | $ | 120,000 | |
Required: Calculate the break-even sales revenue for each company. (Round your "Contribution Margin Ratio" percentage to 2 decimal places (i.e. .1524 = 15.24%) and final answers to 2 decimal places.)
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
