An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Traditional Yams uses a labor-intensive approach, and Auto-Yams uses a mechanized system. CVP income statements for the two companies are shown below.

		Traditional Yams		Auto-Yams
Sales		$400,900		$400,900
Variable costs		323,300		155,900
Contribution margin		77,600		245,000
Fixed costs		24,900		192,300
Net income		$52,700		$52,700

The investment banker is interested in acquiring one of these companies. However, she is concerned about the impact that each company