Question: Exercise 18-24 (Algo) Computing and comparing operating leverage LO A2 Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 4,380, 550

Exercise 18-24 (Algo) Computing and comparing operating leverage LO A2 Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 4,380, 550 2,780, 550 2,029, 050 Starburst Company $ 3,414,000 1,889,000 594,900 (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 10% 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 Denominator: Nuenerator Ratio Degree of Operating Leverage Skittles's DOL 0 Starburst's DOL Required 2 > Exercise 18-24 (Algo) Computing and comparing operating leverage LO A2 Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 4,389, 550 2,780, 550 2,029, 050 Starburst Company $ 3, 414,000 1,889,000 594, 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 10% increase in sales? Complete this question by entering your answers in the tabs below. Required 1 Lequired 2 which company is expected to produce a greater percent increase in income from a 10% increase in sales? Which company is expected to produce a greater percent increase in income from a 10% increase in sales? Required 1 Required 2 >
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