Question: Please do part (B) Exercise 19-15 (Part Level Submission) Casas Modemas of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all
Please do part (B)

"Exercise 19-15 (Part Level Submission) Casas Modemas of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafael Jiminez, Casas 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. Shawn below are CVP income statements for each alternative Manual System ystem Sales Veriable costs Contribution margin Fixed costs Net income 1,670,000 1,336,000 334,000 7,077 $256,923 $1,670,000 668,000 1,002,000 45,077 $256,923 Your answer is correct. Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places,e.g.1.25. Degree of Operating Leverage Manual System Computerized System 3.90 Attempts: 1 of 3 used Calculate the increase in Net income for each alternative if sales increased by $121,000 Increase in Net Income Nanual System Computerized System Which aternative would produce the higher net income? Attempts: 0 of 3 used
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