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Presented below are variable costing income statements for Diggs Company and Doggs Company. They are in the same industry, with the same net incomes, but different cost structures. Sales Variable costs Contribution margin Fixed costs Net income (a2) Diggs Co. $200,000 80,000 120,000 75,000 $45,000 Doggs Co. $200,000 50,000 150,000 105,000 $45,000 Comment on the difference of the break-even point in dollars for each company.

Presented below are variable costing income statements for Diggs Company and Doggs Company. They are in the same industry, with the same net incomes, but different cost structures. Sales Variable costs Contribution margin Fixed costs Net income (a2) Diggs Co. $200,000 80,000 120,000 75,000 $45,000 Doggs Co. $200,000 50,000 150,000 105,000 $45,000 Comment on the difference of the break-even point in dollars for each company.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Presented below are variable costing income statements for Diggs Company and Doggs Company. They are in the same industry, with the same net incomes, but different cost structures. Sales Variable costs Contribution margin Fixed costs Net income (a2) B Diggs Co. $200,000 80,000 I U 120,000 75,000 $45,000 Comment on the difference of the break-even point in dollars for each company. T₂ T² Ix Doggs Co. $200,000 50,000 !!! 150,000 105,000 $45,000 € W E bu M II á ¶¶T T O Word(s)
Transcribed Image Text:Presented below are variable costing income statements for Diggs Company and Doggs Company. They are in the same industry, with the same net incomes, but different cost structures. Sales Variable costs Contribution margin Fixed costs Net income (a2) B Diggs Co. $200,000 80,000 I U 120,000 75,000 $45,000 Comment on the difference of the break-even point in dollars for each company. T₂ T² Ix Doggs Co. $200,000 50,000 !!! 150,000 105,000 $45,000 € W E bu M II á ¶¶T T O Word(s)
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