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Information for two companies follows: Skittles Company Sales $6,000,000 Contribution margin 3,600,000 Fixed costs 2,600,000 Starburst Company $ 4,500,000 1,125,000 375,000 (1) Compute the
Information for two companies follows: Skittles Company Sales $6,000,000 Contribution margin 3,600,000 Fixed costs 2,600,000 Starburst Company $ 4,500,000 1,125,000 375,000 (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 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. Degree of operating leverage Denominator: Numerator: Ratio Contribution margin Income Degree of Operating Leverage Skittles's DOL $ 3,600,000/ + 0 Starburst's DOL $ 1,125,000/ 0 Required Required 2 >
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