Exercise $21-24($Algo$)$ Computing and comparing operating leverage LO A$2$

Information for two companies follows:

$$Skittles CompanyStarburst CompanySales$ $5,143,750$$ $4,477,500$Contribution margin$3,543,7501,552,500$Fixed costs$2,756,250977,500$

$(1)$ 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?