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Information for two companies follows: Starburst Skittles Company Company Sales $ 3,873, 350 $ 3,962,500 Contribution margin 2, 433, 350 1, 337,500 Fixed costs 1,839,

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Information for two companies follows: Starburst Skittles Company Company Sales $ 3,873, 350 $ 3,962,500 Contribution margin 2, 433, 350 1, 337,500 Fixed costs 1,839, 850 802,500 (1) Compute the degree of operating leverage (DOL) for each company. Book (2) Which company is expected to produce a greater percent increase in income from a 30% increase in sales? Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Print Compute the degree of operating leverage (DOL) for each company. ferences Degree of Operating Leverage Numerator: Denominator: Ratio Contribution margin Income Degree of Operating Leverage Skittles's DOL 2,433,350 Starburst's DOL 1,337,500 0

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