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Question 3 of 4 < -16 E Imagen Arquitectnica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently, all of

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Question 3 of 4 < -16 E Imagen Arquitectnica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftspersons. Alfredo Ayala, Imagen's owner, is considering replacing the draftspersons with a computerized drafting system. However, before making the change, Alfredo would like to know its consequences, 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 $1,387,500 $1,387,500 Variable costs 1,110,000 832,500 Contribution margin 277,500 555,000 Fixed costs 166,500 444,000 Operating income $111,000 $111,000

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