TastyKreme and Krispy Kake are both producers of baked goods, but each has followed a different production strategy. The differences in their strategies resulted in differences in their cost structure, as shown in the following table: Estimated sales in units Unit price Variable cost per unit TastyKreme 25,000 Krispy Kake 20,000 7 4 7 2 $ 37,500 $ 60,000 Total fixed costs Required: 1. Compute the operating income and degree of operating leverage for each company. (Round "Degree of operating leverage" to 1 decimal place.) 2. Assuming sales volume for each company will decline by 10% and that their cost structures will not change, compute the percentage and dollar amount of the change in operating income for each company. (Negative values should be indicated by a minus sign.) 1. Operating income Degree of operating leverage 2. Percentage change in operating income Dollar change in operating income TastyKreme Krispy Kake % %