Question
Remo Company and Angelo Incorporated are separate companies that operate in the same industry. Following are variable costing income statements for the two companies
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: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income Required: Remo Company $ 345,000 225,000 $ 120,000 50,000 $ 70,000 Calculate each company's degree of operating leverage. Note: Round your answers to 3 decimal places. Angelo Incorporated $ 345,000 160,000 $ 185,000 115,000 $ 70,000 Remo Company Angelo Incorporated Degree of Operating Leverage
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
2nd edition
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