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At the beginning of chapter 12 (Exhibit 12.1) there is an example about a firm producing hammocks manually but evaluating an automated alternative. After reading

At the beginning of chapter 12 (Exhibit 12.1) there is an example about a firm producing hammocks manually but evaluating an automated alternative. After reading all relevant information about that example, tell me what is your interpretation of the information in the graph below (which is Exhibit 12.7 in your textbook). Compare the respective EBITDA break-even points and the cross-over level in units and state your conclusions.

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EXHIB 12-1 EBITDA for Different Levels of Unit Sales The sensitivity of EBTTDA to changes in unit sales differs for the automated and manual production alternatives in the hammock-manufacturing example. The sheeper line for the automated production alternative means that EBITDA for this altermative is more sensitive to changes in the number of units sold. EXHIB 12-1 EBITDA for Different Levels of Unit Sales The sensitivity of EBTTDA to changes in unit sales differs for the automated and manual production alternatives in the hammock-manufacturing example. The sheeper line for the automated production alternative means that EBITDA for this altermative is more sensitive to changes in the number of units sold

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