Information for two companies follows. (1) Compute the degree of operating leverage (DOL) for each company. (2)
Question:
Information for two companies follows.
(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?
Transcribed Image Text:
Skittles Co. Starburst Co. Sales .... $6,000,000 $4,500,000 Contribution margin .. 3,600,000 1,125,000 Fixed costs.... 2,600,000 375,000 ....
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