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An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Traditional Yams uses a labor-intensive approach, and Auto-Yams

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An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Traditional Yams uses a labor-intensive approach, and Auto-Yams uses a mechanized system. CVP income statements for the two companies are shown below. Traditional Yams Auto-Yams $ 399,000 Sales $ 399,000 311,000 155,000 Variable costs Contribution margin 88,000 244,000 Fixed costs 38,000 194,000 Net income $ 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. Determine the effect on each company's net income if sales decrease by 15% and if sales increase by 8%. Do not prepare income statements. (Round answers to 2 decimal places, eg. 10.52. 1 % change is negative, enter amount with either a negative sign or porenthesis, c.8. 10.52 or (10.52)) % Change in Net Income Sales decrease by 15% Traditional Yams % Auto-Yams % Sales increase by 8% Traditional Yams % Auto Yams

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