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Information for two companies follows: Skittles Company Starburst Company Sales $ 3 , 8 7 3 , 3 5 0 $ 3 , 9 6

Information for two companies follows:
Skittles Company Starburst Company
Sales $ 3,873,350 $ 3,962,500
Contribution margin 2,433,3501,337,500
Fixed costs 1,839,850802,500
(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 30% increase in sales?

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