An investment banking to come in the production and sale onded yam Traditional mesa Labor intensive produto end system.CVP Income statements for the two companies are shown below Traditional Sales 59000 Variable 315.000 56.000 155.000 241.000 191.000 Contribution BLOG 550.000 od but the modu Soo TOM Question 3 of 3 2.25/3 E Calculate each competing leverage found answers to 2 decimal places 1.15) Der fingers AVE Sao TO Question 3 of 3 2.25/3 Determine the effect on each company's net income sales decrease by 10% and it sales increase by Do not prepare income statements Round wens to 2 decimal pe 10.52.7% change is negative, enter amount with either a negative signer parenthes-1057 or(10520 Change in Net Income Sales de 10 SC t 3 0 0 TU Question 3 of 3 2.25/3 HIT 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 Yarns Auto-Yams Sales $395.000 5396,000 155.000 Variable costs 315.000 Contribution margin 81.000 241000 Fixed costs 31.000 191.000 Net income 550.000 550.000 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 Your answer is correct Calculate tach cerempuanys degree of operating leverage. (Round answers to 2 decimal places, es. 1.15) Degree of Operating Leverage Traditional Yams 162 Auto Yams Your TIE 1202022 Question 3 of 3 2.25/3 Determine the effect on each company's net income il sales decrease by 10% and it sales increase by 7%. Do not prepare income statements. (Round answers to 2 decimal places, es 10.52. If % change is negative, enter amount with either a negative sign or parenthesis es 10.520 (10.521 *Change in Net Income Sales decrease by 10% Traditional Yams 162 Auto-Yam Salesina xx Traditional Auto