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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
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 $420,000 273,000 $ 147,000 50,000 $ 97,000 Angelo Incorporated $420,000 180,000 $ 240,000 143,000 $ 97,000 Calculate each company's degree of operating leverage. Note: Round your answers to 3 decimal places. Remo Company Angelo Incorporated Degree of Operating Leverage
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