E-Z Seats manufactures swivel seats for customized vans. It currently manufactures 8,700 seats per year, which it sells for $600 per seat. It incurs variable costs of $264 per seat and fixed costs of $2,192,400. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $3,090,240, and its variable costs will decline to $156 per seat. Answer the following questions. Your answer is partially correct. Prepare a CVP income statement based on current activity, E-Z Seats CVP Income Statement $ > Sales Variable Costs Contribution Margin Fixed Costs Net Income/(Loss) 41 $ X Your answer is incorrect. Compute contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage based on current activity. (Round margin of safety ratio and degree of operating leverage to 1 decimal place, eg. 2.5% or 2.5 and break-even point in dollars to decimal places, eg. 2,520.) Contribution margin ratio % Break-even point in dollars $ Margin of safety ratio % Degree of operating leverage Your answer is partially correct. Prepare a CVP income statement assuming that the company invests in the automated upholstery system. E-Z Seats CVP Income Statement Prepare a CVP income statement assuming that the company invests in the automated upholstery system. E-Z Seats CVP Income Statement Sales . $ Variable Costs Contribution Margin Fixed Costs Net Income/(Loss) $ X Your answer is incorrect. Compute contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage assuming the new upholstery system is implemented. (Round degree of operating leverage to 1 decimal place, e.g. 2.5.) X Your answer is incorrect Compute contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage assuming the new upholstery system is implemented (Round degree of operating leverage to 1 decimal place, e.g. 2.5) % $ Contribution margin ratio Break-even point in dollars Margin of safety ratio Degree of operating leverage % Attempts: 1 of 3 used Submit Save for Later