Question 9 of 10 Sales Variable costs Contribution margin Oriole Hospital is contemplating an investment in an automated surgical system. Its current process relies on the a number of skilled physicians. The new equipment would employ a computer robotic system operated by a technician. The company requested an analysis of the old technology versus the new technology. The accounting department has prepared the following CVP income statements for use in your analysis. Fixed costs Net income (a) Old $2,871,000 1,559,500 1,311,500 1,006,500 $305,000 New Degree of operating leverage $2,871,000 682,450 2,188,550 Compute the degree of operating leverage for the company under each scenario. (Round answers to 2 decimal places, e.g. 15.72.) -/1 1,929,550 $259,000 |||

Oriole Hospital is contemplating an investment in an automated surgical system. Its current process relies on the a number of skilled physicians. The new equipment would employ a computer robotic system operated by a technician. The comparyy requested an analysis of the old technology versus the new technology. The accounting department has prepared the following CVP income statements for use in your analysis. (a) Compute the degree of operating leverage for the company under each sconario. (Round answers to 2 decimal places, g.15.72. )