Iscar Company manufactures aviation blades. Iscar quarterly fixed cost is $2,402,400, and its variable cost per blade is $15,200. Iscar current quarterly sales are 220 units at a price of $32,000 per blade. (In this question, ignore taxes, unless specifically asked about.)

p) Explain the difference between the operating leverage and the financial leverage: q) The company is considering to automate it production, which would increase it fixed cost by $400,000, and reduce it variable cost by $1,600 per unit. Quarterly sales and selling price are not expected to change as a result of the automation process. Would you advise the company to proceed with the automation process? What would be the gain or loss from proceeding with the automation (ignore taxes, show your calculation)? r) What should be the impact of the automation suggested in (a) on ISCAR operating risk? Explain your answer. s) As an alternative to the automation suggested above, the company is considering a marketing campaign, which would increase it fixed cost by $400,000, and increase sales by 30 units. Would you advise the company to proceed with the marketing campaign? What would be the gain or loss from proceeding with the marketing campaign (ignore taxes, show your calculation)? Explain your