Crane Modernas 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, Cranes 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. Shown below are CVP income statements for each alternative.

		Manual System		Computerized System
Sales		$1,560,000		$1,560,000
Variable costs		1,248,000		624,000
Contribution margin		312,000		936,000
Fixed costs		72,000		696,000
Net income		$240,000		$240,000

Calculate the increase in Net income for each alternative if sales increased by $121,000 due to an increase in the number of units sold.