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(a) Assuming the changes have not been made: (b) Assuming that changes are made as described. An investment banker is analyzing two companies that specialize

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(a) Assuming the changes have not been made: (b) Assuming that changes are made as described. An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashioned Apples uses a labour-intensive approach, and Mech-Apple uses a mechanized system. Variable costing income statements for the two companies are shown below: The investment banker wants to acquire one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability. (a) Assuming the changes have not been made: (b) Assuming that changes are made as described. An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashioned Apples uses a labour-intensive approach, and Mech-Apple uses a mechanized system. Variable costing income statements for the two companies are shown below: The investment banker wants to acquire one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability

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