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Information for two companies follows: Starburst Skittles Company Company Sales $ 6, 485,950 $ 4, 218, 000 Contribution margin 4, 585, 950 1, 443, 000

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Information for two companies follows: Starburst Skittles Company Company Sales $ 6, 485,950 $ 4, 218, 000 Contribution margin 4, 585, 950 1, 443, 000 Fixed costs 3, 519, 450 888, 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 Degree of Operating Leverage Skittles's DOL Starburst's DOL 0

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