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Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 3,343,150 1,983, 150 1,474,650 Starburst Company $ 3,659,500 1,184,500 669,500 (1) Compute
Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 3,343,150 1,983, 150 1,474,650 Starburst Company $ 3,659,500 1,184,500 669,500 (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 20% 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. Numerator: Degree of Operating Leverage 1 Denominator: 1 = Ratio Degree of Operating Leverage 0 Skittles's DOL Starburst's DOL 0
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