Question: Exercise 1 8 - 2 4 ( Static ) Computing and comparing operating leverage LO A 2 Information for two companies follows: Skittles CompanyStarburst CompanySales$

Exercise 18-24(Static) Computing and comparing operating leverage LO A2
Information for two companies follows:
Skittles CompanyStarburst CompanySales$ 6,000,000$ 4,500,000Contribution margin3,600,0001,125,000Fixed costs2,600,000375,000
(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?

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