there is Exhibit 12.4 12-5 that shows an example about a firm producing hammocks manually but...

 

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there is Exhibit 12.4 12-5 that shows an example about a firm producing hammocks manually but evaluating an automated alternative. After reading all relevant information about that example, tell me what would be the most important conclusion? EXHIBIT 12.4 EBITDA for Different Levels of Unit Sales The sensitivity.of EBITDA to changes in unit sales differs for the automated and manual production alternatives in the hammock-manufacturing example. The steeper line for the automated production alternative means that EBITDA for this alternative is more sensitive to changes in the number of units sold. $160 EBITDA ($ thousands) $120 $80 $40 $0 -$40 EBITDA for automated production as the number of units sold changes 5,000 10,000 Number of Units Sold EBITDA for manual production as the number of units sold changes 15,000 20,000 there is Exhibit 12.4 12-5 that shows an example about a firm producing hammocks manually but evaluating an automated alternative. After reading all relevant information about that example, tell me what would be the most important conclusion? EXHIBIT 12.4 EBITDA for Different Levels of Unit Sales The sensitivity.of EBITDA to changes in unit sales differs for the automated and manual production alternatives in the hammock-manufacturing example. The steeper line for the automated production alternative means that EBITDA for this alternative is more sensitive to changes in the number of units sold. $160 EBITDA ($ thousands) $120 $80 $40 $0 -$40 EBITDA for automated production as the number of units sold changes 5,000 10,000 Number of Units Sold EBITDA for manual production as the number of units sold changes 15,000 20,000

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Based on the information provided in Exhibit 124 the most important conclusion from the hammockma... View the full answer