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Exercise 9-32 (Algo) Degree of Operating Leverage (DOL) [LO 9-5] Tastykreme and Krispy Kake are both producers of baked goods, but each has followed a

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Exercise 9-32 (Algo) Degree of Operating Leverage (DOL) [LO 9-5] Tastykreme and Krispy Kake are both producers of baked goods, but each has followed a diffeient production strategy The differences in their strategles resulted in differences in their cost structure, as shown in the following table Required: 1. Compute the operating income and degree of operating leverage for each compary (Round "Degree of operating levernge" to 1 decimal ploce.) 2. Assuming sales volume for each company will decline by toxi and that their cost structures will not change, compute the percentage and dollar amount of the change in operating incorne for each company (Negative values should be indicated by o minus sign.)

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