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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
Variable costs
80,000
50,000
Contribution margin
120,000
150,000
Fixed costs
60,000
90,000
Net income
$ 60,000
Compute the break-even point in dollars for each company and comment on your findings.
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