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

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An investment barker is analyzing two companies that specialize in the production and sale of candied yams. Blossom Yams uses a labor-intensive approach, and Crane Yams uses a mechanized system. CVP income statements for the two compariesare shown below. Theinvestment banker is interasted in acquiring one of these comparies. However, she is concerned about the impart that each company's cost structure might have an its profitability (a) Degree of Operating toverase Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, eg. 1.15.) Degree of Operating Leverage Blossom Yams Crane Yams eTextbook and Media (b) (7) Your answer is incorreit. Determine the effect on each company's netincome if sales decrease try 15%5 and if sales increase by 10% Assume that sales fluctuations are attributable to changes in thits sold. Do not prepare intcome statements. (Round answers to 2 decimal ploces, eg. 10.52. if 3 change is nisgative, enter amount with either o negotive sign or porenthiesis, eg-10.52 or (10.52)) Determine the effect on each company's net income if sales decr ease by 15% and if sales increase by 10%. Assume that sales: fluctuations are attributable to changes in units sold. Do not prepare income statements. (Round answers to 2 decimal places, eg. Assistance Used

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