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  1. business
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  3. calculate the increase in net income for each alte

Calculate the increase in Net income for each alternative if sales increased by $132.000 due...

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Accounting

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Calculate the increase in Net income for each alternative if sales increased by $132.000 due to an increase in the number of units sold. Which alternative would produce the higher net income? Calculate the margin of safety ratio for the original scenarios in Part a. (Round ratios to 2 decimal places, eg. 0.25.) Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. Sunland Modernas of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafael Jiminez, Sunland's owner, is considering replacing the draftsmen with a computerized drafting system. However, before making the change, Rafael 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

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