Current Attempt in Progress 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 (al) Traditional Yams Traditional Yams Auto-Yams 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. $391,000 322,000 Save for Later 69,000 19,000 Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, e.g. 1.15.) eTextbook and Media $50,000 Auto-Yams $391,000 164,000 227,000 177,000 $50,000 Degree of Operating Leverage Attempts: 0 of 5 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

Current Attempt in Progress An investment banker is analyzing two companies that speciallze 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. 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) Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, e.s. 1.15.) eTextbook and Media Attempts: 0 of 5 used (b) The parts of this question must be completed in order, This part will be avallable when you complete the part above