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01:17:19 Mc Information for two companies follows: Skittles Company Sales $ 4,380,550 Contribution margin Fixed costs 2,780,550 2,029,050 Starburst Company $ 3,414,000 1,089,000 594,000
01:17:19 Mc Information for two companies follows: Skittles Company Sales $ 4,380,550 Contribution margin Fixed costs 2,780,550 2,029,050 Starburst Company $ 3,414,000 1,089,000 594,000 (1) Compute the degree of operating leverage (DOL) for each company. (2) Which company is expected to produce a greater percent increase in income from a 10% increase in sales? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the degree of operating leverage (DOL) for each company. Degree of Operating Leverage Numerator: Denominator: Ratio Contribution margin Income Degree of Operating Leverage Skittles's DOL $ 2,780,550 $ Starburst's DOL 1,089,000 $ 4,380,550 3,414,000 0.63 0.32
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