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Information for two companies follows: Skittles Company Sales Contribution margin Fixed costs $ 7,054,000 5,304,000 4,284,000 Starburst Company $ 4,275,000 1,395,000 945,000 (1) Compute
Information for two companies follows: Skittles Company Sales Contribution margin Fixed costs $ 7,054,000 5,304,000 4,284,000 Starburst Company $ 4,275,000 1,395,000 945,000 (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 10% 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 Numerator: Denominator: Ratio Contribution margin Income Degree of Operating Leverage Skittles's DOL 0.00 Starburst's DOL 0 Required Required 2 >
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