Please take your time . Read the question carefully and solve the question .

DONT PROVIDE WRONG ANSWER I HAVE ONE LAST ATTEMPT LEFT

Please provide correct answers. Many tutors provided wrong answer for this . Part A ) is already solved solve part b , c and D .

part a for reference

Part B

Part C

c. Prepare a variable-costing income statement assuming that the company invests in the automated upholstery system

PART D

d. Calculate the contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage assuming the company implements the new upholstery system.

PART E

e. Discuss the implications of adopting the new system.

ComfortCraft manufactures swivel seats for customized vans. It currently manufactures 20,000 seats per year, which it sells for $680 per seat. It incurs variable costs of $340 per seat and fixed costs of $4,420,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does this, its fixed costs will be $5 million, and its variable costs will drop to $280 per seat Prepare a variable-costing income statement based on current activity, ComfortCraft Income Statement-Variable Costing Sales $ 13600000 Variable Costs 6800000 i Contribution Margin 6800000 Fixed Costs 4,420,000 Net Income/(Loss) $ 2380000 (b) Calculate the contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage based on current activity. (Round degree of operating leverage to 3 decimal places, es 2.750 and all other answers to decimal places, es 25% or 55,275) 96 Contribution margin ratio Break-even point 96 Margin of safety ratio Degree of operating leverage