Sales Contribution margin Fixed costs Skittles Company $ 4,075,600 2,595,600 1,977,600 $ 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? Skittles's DOL Starburst's DOL Company 3,870,000 1,350,000 810,000 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: Numerator: Ratio Degree of Operating Leverage
Sales Contribution margin Fixed costs Skittles Company $ 4,075,600 2,595,600 1,977,600 $ 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? Skittles's DOL Starburst's DOL Company 3,870,000 1,350,000 810,000 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: Numerator: Ratio Degree of Operating Leverage
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13EA: Company A has current sales of $10,000,000 and a 45% contribution margin. Its fixed costs are...
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