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Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 3,873,350 2,433, 350 1,839,850 Starburst Company $ 3,962,500 1,337,500 802,500 (1) Compute
Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 3,873,350 2,433, 350 1,839,850 Starburst Company $ 3,962,500 1,337,500 802,500 (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 Denominaton Numerator: Ratio Degree of Operating Leverage Skitties s DOL Starburst's DOL Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 3,873,350 2,433, 350 1,839,850 Starburst Company $ 3,962,500 1, 337,500 802,500 (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 Which company is expected to produce a greater percent increase in income from a 30% increase in sales? Which company is expected to produce a greater percent increase in income from a 30% increase in sales?
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