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Information for two companies follows skittles company sales 6 , 4 8 5 , 9 5 0 contribution margins 4 , 5 8 5 ,

Information for two companies follows skittles company sales 6,485,950 contribution margins 4,585,950 fixed costs 3,519,450 Starbucks company sales for 4,218,000 contribution margins 1,443,000 fix cost 888,000.(1) Compute the degree of operating leverage (DOL) for each company. (2) Which company is expected to produce a greater percentage increase in income from a 10% in sales?

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