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Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are...

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 $ 275,000 $ 275,000 Less: Variable cost 200,000 125,000 Contribution margin $ 75,000 $ 150,000 Less: Fixed cost 35,000 110,000 Net operating income $ 40,000 $ 40,000 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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--requirement, with workings

Remo Co Angelo Inc
A Fixed Cost $35,000.00 $110,000.00
B Contribution margin $75,000.00 $150,000.00
C Sales revenue $275,000.00 $275,000.00
D = (B/C) x 100 Contribution margin ratio 27.27% 54.55%
E = A/D Break even sales Revenue 128,346.17 201,649.86 Answers

ekkarill92 answered 2 years ago
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