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An investment banker is analyzing two companies that specialize in the production and sale of gourmet cappuccino and chai mixes. Roasted Beans Co, uses a

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An investment banker is analyzing two companies that specialize in the production and sale of gourmet cappuccino and chai mixes. Roasted Beans Co, uses a labor-intensive approach and Monat Industries uses a mechanized system. Variable costing income statements for the two companies are shown below: The imvestment banker is interested in acquiringone of these companses. However, she is concerned about the impact that each company's cost structure might have on its prohtability. (3) Caiculate eachicompary's degree of operating leveroge. Determine the effect on each company's net income. Do not prepare income statements. If sales decrease by 10% If sales increase by 15%

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