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An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Sheridan Yams uses a labor-intensive approach, and Sunland

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An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Sheridan Yams uses a labor-intensive approach, and Sunland Yams uses a mechanized system. CVP income statements for the two companies are shown below. 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. Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, eg. 1.15.)

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