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Book Information for two companies follows: Skittles Company Sales Contribution margin Fixed costs $ 6,000,000 3,600,000 2,600,000 Starburst Company $ 4,500,000 1,125,000 375,000 (1)
Book Information for two companies follows: Skittles Company Sales Contribution margin Fixed costs $ 6,000,000 3,600,000 2,600,000 Starburst Company $ 4,500,000 1,125,000 375,000 (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 20% increase in sales? Complete this question by entering your answers in the tabs below. Print 0 Required 1 Required 2 eferences Compute the degree of operating leverage (DOL) for each company. Skittles's DOL Starburst's DOL Degree of operating leverage Numerator: Denominator: Ratio Degree of Operating Leverage 0 0 Required 1 Required 2 >
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