Question: please answer parts b and c Cullumber Modernas of Juarez. Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting



Cullumber Modernas of Juarez. Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Ratael Jiminez, Cultumber's 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 yoar. Shown below are CVP income statements for each alternative. (a) Your answer is correct Determine the degree of operating leverage for each alternative. (Reund answers to 2 decimal places, e.3. 1.25.) Calculate the increase in Net income for each alternative if sales increased by $125,000 due to an increase in the number of units sold. Which alternative would produce the higher net income? eTextbook and Media Attempts: 0 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2 (c) Calculate the margin of safety ratio for the original scenarios in Part a. (Round ratios to 2 decimal places, e.g. 0.25. )
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