3 of 5 - Exa x A Chapter 10 Formula X A Chapter 10 Lecture S X A Click to Open the Co x t-player/index.html?launchId=acb6b8e1-f2a8-47e6-bff5-a5a4acff9a23#/question/2 ee/DCC Sea... A D2L P MLA Format Gener... A Marketing major pl... A Business Managem... Sales Variable costs Contribution margin Question 3 of 5 Cullumber Beans Co. uses a labor-intensive approach and Blossom Industries uses a mechanized system. Variable costing income statements for the two companies are shown below: Fixed costs Net income (a) Cullumber Beans Blossom Industries CullumberBeans (b) $1,280,000 Save for Later eTextbook and Media 832,000 448,000 Q Search 224,000 $224,000 Blossom Industries Calculate each company's degree of operating leverage. (Round answers to 1 decimal place, e.g. 15.5.) $1,280,000 272,000 The investment banker is interested in acquiring one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability. 1,008,000 Degree of Operating Levera