Question 2 Ivanhoe Bucket Co, a manufacturer of rain barrels, had the following data for 2019. Sales 2,260 units Sales price $45 per unit Variable costs $27 per unit Fixed costs $20,340 y Study (a) What is the contribution margin ratio? Contribution margin ratio % Click if you would like to show Work for this question: Open Show Work Attempts: 0 of (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. Return to Blackboard LUS Weygandt, Managerial Accounting, se Heln Svatem Announcements RCES Question 3 An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Traditional Yams uses a la system. CVP Income statements for the two companies are shown below. Traditional Yams Auto-Yams Sales $391,000 $391,000 Variable costs 322,000 164,000 Contribution margin 69,000 227,000 Fixed costs 19,000 177,000 Net income $50,000 $50,000 Study The investment banker is interested in acquiring one of these companies. However, she is concerned about the impact that each company Calculate each company's degree of operating leverage (Round answers to 2 decimal places, e., 1.18.) Degree of Operating Leverage Traditional Yams Auto-Yams Determine the effect on each company's net income if sales decrease by 20% and if sales increase by 8%. Do not prepare income stateme change is negative, enter amount with either a negative sign or parenthesis, eg. 10.52 or (10.52).) * Change in Net Income Sales decrease by 20% Traditional Yams Auto-Yams Sales increase by 8% Traditional Yams Muto-Yams Click if you would like to show Work for this question: Doen Show Work MacBook Air 888 BO 72 09 Db 22 FS TO @ A 2 2 3 $ 4 % 5 & 7 0 6 1 V 8 A 99 W E R U ve Coro 6.16 E C