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Exercise 19-15 Casas Modernas of Juarez, Mexico, contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled

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Exercise 19-15 Casas Modernas of Juarez, Mexico, contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafael Jiminez, Casas 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 Sales Variable costs Contribution margin Fixed costs Net income $1,660,000 1,328,000 332,000 86,024 $245,926 Computerized System $1,660,000 564,000 996,000 750,074 $245,926 Your answer is incorrect. Try again. 2 decimal places ag. 1.25.) Determine the degree of operating leverage for each alternative. (Round answers Degree of Operating Leverage Manual System Computerized System

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