An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashioned Apples uses a labour-intensive approach, and Mech-Apple uses a mechanized system. Variable costing income statements for the two companies are shown below: Old-Fashioned Apples Mech-Apple Sales $580,000 $580,000 Variable costs 377,000 174,000 Contribution margin 203,000 406,000 Fixed costs 153,000 356,000 Operating income $50,000 $50,000 The investment banker wants to acquire one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability.