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:

Required:

Compute the operating income and degree of operating leverage for each company. $($Round "Degree of

operating leverage" to $1$ decimal place.$)$

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.$)$