Exercise 9-32 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: Estimated sales in units Unit price Variable cost per unit Total fixed costs Tastykreme 24,000 8 5 $ 36,000 Krispy Kake 19,000 6 1 $ 57,000 Required: 1. Compute the operating income and degree of operating leverage (DOL) 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.) Tasty Kreme Krispy Kake 1. Operating income Degree of operating leverage 2. Percentage change in operating income Dollar change in operating income % %