points

Sales

Contribution margin

Fixed costs

Fixed costs

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 $10\%$ 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.

References