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Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's

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Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below. Tablet Division MP3 Player Division Total Sales $888,300 $521.700 $1,410,000 Variable costs 657,342 297,369 954,711 Contribution margin $230,958 $224,331 455.289 Fixed costs 129,160 Net income $326,129 (a) Determine sales mix percentage and contribution margin ratio for each division Sales Mix Percentage 96 Tablet division 90 MP3 Player division Contribution Margin Ratio Tablet division MP3 Player division 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. Sales Variable costs Contribution margin Fixed costs Net income Traditional Yams $394,000 328,000 66,000 16,000 $50,000 Auto-Yams $394,000 156,000 238,000 188,000 $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. (a 1) Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, 68.1.15.) Degree of Operating Leverage Traditional Yams Auto-Yams

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