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5 Information for two companies follows: 6 points Sales Contribution margin Fixed costs Skittles Company $ 4,718,050 3,278,050 2,659,550 Starburst Company $ 4,199,000 1,424,000 979,000
5 Information for two companies follows: 6 points Sales Contribution margin Fixed costs Skittles Company $ 4,718,050 3,278,050 2,659,550 Starburst Company $ 4,199,000 1,424,000 979,000 eBook (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 30% increase in sales? 100 Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 References Compute the degree of operating leverage (DOL) for each company. Degree of Operating Leverage Numerator: Denominator: Ratio Degree of Operating Leverage Skittles's DOL Starburst's DOL Required 1 Required 2 >
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