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 different production strategy. The differences in their strategies resulted in differences in their cost structure, as shown in the following table: Krispy Kake TastyKreme Estimated sales in 21,000 34,000 units Unit price 5 9 Variable cost per unit 2 4 Total fixed costs $ 31,500 $ 102,000 Required: 1. Compute the operating income and degree of operating leverage for each company. (Round "Degree of operating leverage" to 1 decimal place.) 2. Assuming sales volume for each company will decline by 10% and that their cost structures will not change, compute the percentage and dollar amount of the change in operating Income for each company. (Negative values should be indicated by a minus sign.) 1. Operating income 2. Degree of operating leverage Percentage change in operating income Dollar change in operating income TastyKreme Krispy Kake % %