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Blue Spruce Co. is contemplating a major change in its cost structure. Currently,...

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Accounting

Blue Spruce Co. is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled drafters. Mike Blue Spruce the owner, is considering replacing the drafters with a computerized drafting system.
However, before making the change, Mike would like to know the consequences of the change, since the volume of business varies significantly from year to year. Shown below are CVP income statements for each alternative.
\table[[,Manual System,Computerized System],[Sales,$1,890,000,$1,890,000
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