An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Cullumber Yams uses a labor-intensive approach, and Ivanhoe Yams uses a mechanized system. CVP income statements for the two companies are shown below. Sales Variable costs Contribution margin Fixed costs Net income (a1) MODNI Cullumber Yams Cullumber Ivanhoe Yams Yams $405,000 323,000 82,000 32,000 $50,000 Ivanhoe Yams $405.000 160.000 245.000 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. 195,000 $50,000 Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage

Quite often, people may face situations that put them in an ethical conflict. The best way to cope with this is ________.   Question 22 options:   A)  to develop a personal code of ethical conduct about what is right and wrong   B)  to use the "golden rule"   C)  to do what makes the largest number of people happy in the situation   D)  to do nothing and ignore the situation   E)  to act the same way you have seen others act in similar situations

Match each of the components of faithful representation with its definition.Faithful Representation                             Definition1 . Freedom from error      a. All information necessary to describe an item is                                                  reported. 2. Neutrality                       b. Information that does not bias the decision                                                         maker. 3. Completeness                c. Reported amounts reflect the best available                                                        information.

Some accountants argue that the receiving department should be eliminated. Discuss the objective of eliminating the receiving function. What accounting/audit problems need to be resolved.