An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Pharoah Yams uses a labor-intensive approach and Sheridan Yams uses a mechanized system. CVPincome statements for the two companies are shown below. Pharoah Yams Sales Sheridan Yams $ 403,000 155,000 248,000 198,000 $ 403,000 315,000 88,000 Variable costs Contribution margin Fixed costs Net income 38,000 $50,000 $ 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, es 1.15.) Degree of Operating Leverage Pharoah Yams Sheridan Yams Determine the effect on each company's net income if sales decrease by 15% and if sales increase by 10%. Assume that sales fluctuations are attributable to changes in units sold. Do not prepare income statements. (Round answers to 2 decimal places, eg. 10.52. If change is negative, enter amount with either a negative sign or parenthesis, ex. - 10.52 or (10.52).) *Change in Net Income Sales decrease by 15% Pharoah Yams % Sheridan Yams % Sales increase by 10% % Pharoah Yams % Sheridan Yams