An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Oriole Yams uses a labor-intensive approach, and Pharoah Yams uses a mechanized system. CVP income statements for the two companies are shown below.

		Oriole Yams		Pharoah Yams
Sales		$ 402,000		$ 402,000
Variable costs		322,000		156,000
Contribution margin		80,000		246,000
Fixed costs		30,000		196,000
Net income		$ 50,000		$ 50,000

Calculate each companies Degree of Operating Leverage.