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Question 3 of 4 View Polides < Current Attempt In Progress Imagen Arc of Tijuana Medico, is contemplating a major change in its cost
Question 3 of 4 View Polides < Current Attempt In Progress Imagen Arc of Tijuana Medico, 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 statemefits for each alternative Manual System Computerized System Sales $1,140,000 $1.140.000 Variable costs 912,000 684,000 Contribution margin 228.000 456,000 Fixed costs Operating Income 114,000 342,000 $114,000 $114,000 Determine the degree of operating leverage for each alternative (Round drower to 2 decimal places 1525) Operating leverage
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