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Do not need to do part a) as I already got that wrong Exercise 19-15 (Part Level Submission) Arquitectos Interiores of Juarez, Mexico, is contemplating

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Do not need to do part a) as I already got that wrong

Exercise 19-15 (Part Level Submission) Arquitectos Interiores of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen Alfonso Jiminez, Arquitectos' owner, is considering replacing the draftsmen with a computerized drafting system. However, before making the change, Alfonso 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 Variable costs Contribution margin Fixed costs Net income $1,746,000 1,396,800 349,200 116,400 $232,800 $1,746,000 698,400 1,047,600 814,800 $232,800 (a) Your answer is incorrect. Try again Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places, e.g. 1.25.) Degree of Operating Leverag Manual System 33.33 Computerized System 77.78

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