Information for two companies follows:

	Skittles Company	Starburst Company
Sales	$ 4,701,600	$ 4,116,000
Contribution margin	3,141,600	1,456,000
Fixed costs	2,427,600	896,000

(1) Compute the degree of operating leverage (DOL) for each company.

Complete this question by entering your answers in the tabs below.

• Required 1

Compute the degree of operating leverage (DOL) for each company.

Required 1

Degree of Operating Leverage
	Numerator:	/	Denominator:	=	Ratio
	Contribution marginselected answer correct	/	Incomeselected answer correct	=	Degree of Operating Leverage
Skittless DOL	$3,141,600selected answer correct	/	not attempted		0
Starbursts DOL	$1,456,000selected answer correct	/	not attempted		0