Provide a detailed explanation to assist the Christians in understanding the impact the upgrade would have on the breakeven, margin of safety and degree of operating leverage. Based on this, discuss whether you would recommend upgrading the equipment. Why or why not? Is this enough information to base your decision on? Why or why not?

43 44 Margin of Safety 45 Calculation: Current Revenue - Breakeven Revenue 46 47 Planned Sales 48 Breakeven Sales 49 Margin of Safety 50 Current Upgrade $ 529,875 $ 529,875 $ 355,635 $ 377,266 $ 174,240 $ 152,609