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
Sales		$400,000		$400,000
Variable costs		320,000		160,000
Contribution margin		80,000		240,000
Fixed costs		30,000		190,000
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