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Tastyltlreme and Hrispy l-(ake are both producers of baked goods. but each has followed a different production strategy. The differences in their strategies resulted in

image text in transcribed Tastyltlreme and Hrispy l-(ake 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: Testjmrene ring": Rake Estimated sales in units 25 , ' 29' , Dill] Unit price 3 3 Variable oost per unit. 5 3 Total fixed costs 5 39,l 5 3T,{I I Required: 1. |Compute the operating income and degree of operating leverage {DBL} for each company. [Hound \"Degree of operating leverage\" to 1 decimal place.) 2. Assuming sales volume for each company will decline by 10s. and that their cost structures will not cha nge, compute the percentage and dollar amount of the change in operating income for each company. {Negative values should be indicated by a minus sign.] __I_ __I_ n Feroentage change in operating inoome _-_ \"Newman-mime _l_

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