Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 6,000,000 3,600,000...
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Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 6,000,000 3,600,000 2,600,000 Starburst Company $ 4,500,000 1,125,000 375,000 (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 20% 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 Numerator: 1 Denominator: = Ratio 1 Degree of Operating Leverage Skittles's DOL Starburst's DOL 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 20% increase in sales? Which company is expected to produce a greater percent increase in income from a 20% increase in sales?
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