Question
Information for two companies follows: Sales Skittles Company $ 3,030,000 Starburst Company $3,390,000 Contribution margin Fixed costs 1,710,000 1,260,000 1,150,000 650,000 (1) Compute the
Information for two companies follows: Sales Skittles Company $ 3,030,000 Starburst Company $3,390,000 Contribution margin Fixed costs 1,710,000 1,260,000 1,150,000 650,000 (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. Skittles's DOL Starburst's DOL Degree of Operating Leverage Numerator: Denominator: Ratio Degree of Operating Leverage
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