An investment banker is analyzing two companies that specialize in the production and sale of gourmet cappuccino and chai mix Pharoah Beans Co. uses a labor-intensive approach and Sheridan 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. (a) 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. (a) Calculate each company's degree of operating leverage. (Round answers to 1 decimal place, eg. 15.5.)