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Compute the break-even point in dollars for each company

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Reference no: EM13889091

Presented below are variable costing income statements for Logan Company and Morgan Company. They are in the same industry, with the same net incomes, but different cost structures.

Logan Co.

Morgan Co.

Sales

$200,000

$200,000

Variable costs

80,000

50,000

Contribution margin

120,000

150,000

Fixed costs

60,000

90,000

Net income

$  60,000

$  60,000

Compute the break-even point in dollars for each company and comment on your findings.

Reference no: EM13889091

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