Exercise 19-16 (Part Level Submission) 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 Sales Variable costs Contribution margin Fixed costs Net income $405,000 323,000 82,000 32,000 $50,000 Auto-Yams $405,000 160,000 245,000 195,000 $50,000 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. *(a1) X Your answer is incorrect. Try again. Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Traditional Yams 2.56 Auto-Yams Attempts