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how to slove this question? i complete first part but i dont know how to slove second part. An investment banker is analyzing two companies

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how to slove this question? i complete first part but i dont know how to slove second part.

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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 Mach-Apple uses a mechanized system. Variable costing income statements for the two companies are shown below: Sales $660,000 $660,000 Variable costs 363,000 132,000 Contribution margin 297,000 528,000 Fixed costs 247,000 478,000 Operating income $50,000 $50,000 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. Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, e.g. 15.25.) Old-Fashioned: Mech-Apple: 10.56 Determine which company's cost structure makes it more sensitive to changes in its sales volume. Present your answer in terms of the contribution margin ratio. Contribution margin ratio Mech-A le v . . . . Will be more sensmve to changes In sales volume. Determine the effect on each company's operating income if (1) Sales decrease by 15%. (Round percentages to 2 decimal places, e.g. 15.25%.) Old-Fashioned: Operating Incom decreases increases by -89.10 % or $ Mech-Apple: Operating Income decreases v by -158.40 % or $ (2) Sales increase by 10%. (Round percentages to 2 decimal places, e.g. 15.25%.) Old-Fashioned: Operating income increases V by % or $ Mech-Apple: Operating income increases v by % or $Determine the effect on each company's operating income if (1) Sales decrease by 15%. (Round percentages to 2 decimal places, e.g. 15.25%.) old-Fashioned: Operating Income bY -89'10 % 0" $l:| Mach-Apple: Operating Income by '158'40 % 0" $l:| (2) Sales increase by 10%. (Round percentages to 2 decimal places, e.g. 15.25%.) OldFasmone'j: Operating income by |:|% or $l:| Mech-Apple: Operating income by

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