An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Cullumber Yams uses a labor-intensive approach, and Ivanhoe Yams uses a mechanized system. CVP income statements for the two companies are shown below. Sales Variable costs Contribution margin Fixed costs Net income Cullumber Yams $405,000 (a1) 323,000 82,000 32,000 $50,000 Ivanhoe Yams $405,000 160,000 245,000 195,000 $50,000 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, e.g. 1.15.) SUPPO

An investment banker is analyzing two companles thot specialize in the production and sale of candied yams. Cullumber Yams uses a labor-intentive approach, and fvantioe 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, e.g. 1.15.) Attempts: 0 of 7 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above