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Remo Company and Angelo Incorporated are separate companies that operate in the same industry. Following are variable costing income statements for the two companies showing
Remo Company and Angelo Incorporated 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 Angelo Incorporated Sales revenue $ 335,000 $ 335,000 Less: Variable cost 225,000 135,000 Contribution margin $ 110,000 $ 200,000 Less: Fixed cost 40,000 130,000 Net operating income $ 70,000 $ 70,000 Required: Calculate each companys degree of operating leverage
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