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Skittles Starburst Company Company Sales $ 6,506,250 $ 4,377,000 Contribution margin 4,606,250 1,452,000 Fixed costs 3,768,750 1,012,000 (1) Compute the degree of operating leverage (DOL)
Skittles Starburst Company Company Sales $ 6,506,250 $ 4,377,000 Contribution margin 4,606,250 1,452,000 Fixed costs 3,768,750 1,012,000 (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 Denominator: Numerator: Ratio Degree of Operating Leverage Skittles's DOL Starburst's DOL Required Required 2 > Information for two companies follows: Skittles Starburst Company Company Sales $ 6,506,250 $ 4,377,000 Contribution margin 4,606,250 1,452,000 Fixed costs 3,768,750 1,012,000 (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 Which company is expected to produce a greater percent increase in income from a 10% increase in sales? Which company is expected to produce a greater percent increase in income from a 10% increase in sales?
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