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Compute the degree of operating leverage (DOL) for each company. nformation for two companies follows: Skittles Starburst Company Company Sales $ 4, 701, 600 $

Compute the degree of operating leverage (DOL) for each company.

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nformation for two companies follows: Skittles Starburst Company Company Sales $ 4, 701, 600 $ 4. 116, 000 Contribution margin 3, 141, 600 1, 456, 000 Fixed costs 2, 427, 600 896.000 (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 30% increase in sales? 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 Degree of Operating Leverage Skittles's DOL Starburst's DOL Required 2

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