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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: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income Angelo Remo Co. Inc. $355,000 $355,000 260,000 160,000 $ 95,000 $195,000 50,000 150,000 45,000 $ 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 Leverage
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