Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 6,485,950 4,585,950 3,519,450...
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Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 6,485,950 4,585,950 3,519,450 Starburst Company $ 4,218,000 1,443,000 888,000 (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? Information for two companies follows: Sales Contribution margin Fixed costs Skittles Company $ 6,485,950 4,585,950 3,519,450 Starburst Company $ 4,218,000 1,443,000 888,000 (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?
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