Casas Modemas of Juarez. Meaico, is contemplating a major change in its cost structure. Currentiy,...
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Casas Modemas of Juarez. Meaico, is contemplating a major change in its cost structure. Currentiy, all of iis drafting work in performed ty skilled draftsmen. Rafael Jiminez, Casas' owner, is considering teplacing the draftimen with a computerired drafting system. However, before making the change. Ratael would lake to krow the coniequences of the chance, since the volume of bunines! varies significantly from year to year. Shown below are CVP income statements for each aliernative. (a) Determine the degree of operating leverage for each alfemative. (Round aniwen to 2 decimal places, es, 1.25)
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