Question: Exercise 20-15 Casas Modernas owner, is considering replacing the draftsmen with a computerized drafting system. However, before making the change, Rafael would like to know
Exercise 20-15 Casas Modernas owner, is considering replacing the draftsmen with a computerized drafting system. However, before making the change, Rafael would like to know the consequences of the change, since the volume of business varies significantly from year to year. Shown below are CVP income statements for each alternative. of Juarez, Mexico, is contemplating a major change in by skilled draftsmen. Rafael Jiminez, Casas Manual System Computerized Sales Contribution margin Fixed costs Net income $1,410,000 1128,000 282,000 73,111 $208,889 $1,410,000 564,000 846,000 637.11 termine the degree of operating leverage for each alternative. (Round answers to 2 decimal places, e.q. 1.2s Degree of Operating Leverage Manual System Computerized System
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