Information for two companies follows: Skittles Company Sales $ 4,718,050 Contribution margin Fixed costs 3,278,050 2,659,550...

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Information for two companies follows: Skittles Company Sales $ 4,718,050 Contribution margin Fixed costs 3,278,050 2,659,550 Starburst Company $ 4,199,000 1,424,000 979,000 (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 30% 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. Skittles's DOL Starburst's DOL Degree of Operating Leverage Numerator: Denominator: Ratio = Degree of Operating Leverage 0 0 < Required 1 Required 2 > Required 1 Required 2 Which company is expected to produce a greater percent increase in income from a 30% increase in sales? Which company is expected to produce a greater percent increase in income from a 30% increase in sales? < Required 1 Required 2 > Information for two companies follows: Skittles Company Sales $ 4,718,050 Contribution margin Fixed costs 3,278,050 2,659,550 Starburst Company $ 4,199,000 1,424,000 979,000 (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 30% 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. Skittles's DOL Starburst's DOL Degree of Operating Leverage Numerator: Denominator: Ratio = Degree of Operating Leverage 0 0 < Required 1 Required 2 > Required 1 Required 2 Which company is expected to produce a greater percent increase in income from a 30% increase in sales? Which company is expected to produce a greater percent increase in income from a 30% increase in sales? < Required 1 Required 2 >

Answer rating: 100% (QA)

To compute the degree of operating leverage DOL for each company we can use the following formula ... View the full answer