An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Ivanhoe Yams uses a

labor$-$intensive approach, and Oriole 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.

$($a$1)$

Calculate each company's degree of operating leverage. $($Round answers to $2$ decimal places, e$.$g$.1\mathrm{.}15.)$

Degree of Operating Leverage

Ivanhoe Yams

Oriole Yams