E6-16 (Static) Calculating Degree of Operating Leverage [LO 6-5] 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 Remo Company $ 275,000 200,000 $ 75,000 35,000 $ 40,000 Degree of Operating Leverage Required: Calculate each company's degree of operating leverage. Note: Round your answers to 3 decimal places. Angelo Incorporated $ 275,000 125,000 $ 150,000 110,000 $ 40,000 Remo Company Angelo Incorporated 4

E6-16 (Static) Calculating Degree of Operating Leverage [LO 6-5] 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: Required: Calculate each company's degree of operating leverage Note: Round your answers to 3 decimal places