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An investment banker is analyzing two companies that specialize in the production and sale of gourmet cappuccino and chai mixes. Sunland Reans CO, uses a

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An investment banker is analyzing two companies that specialize in the production and sale of gourmet cappuccino and chai mixes. Sunland Reans CO, uses a labor-intensive approach and Carla Vista Industries uses a mechanized system. Variable costing 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. Determine the effect on each company's net income. Do not prepare income statements. (Round answers to 1 decimal ploce, es. 1550c) If sales decrease by 10%. If sales increase by 15%

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