Current Attempt in Progress An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashioned Apples uses a labour-intensive approach, and Mech-Apple uses a mechanized system. Variable costing income statements for the two companies are shown below: Old-Fashioned Apples Mech-Apple Sales $328,000 $328,000 Variable costs 278,800 131.200 Contribution margin 49,200 196,800 Fixed costs 24,600 155,800 Operating income $24.600 $41,000 The investment banker wants to acquire one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability. (a)