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Casas Modernas of Juarez. Mexico, is contemplating a major change in its cost structure. Currently, alli of its drafting work is performed by skilled draftsmen. Rafael Jiminez Casas's owner, is considering replacing the draftsmen witha competerised drafting system. However, before making the change, Rafael would like to fonow the consequences of the change since the volume of busine-s varies significantiy from year to year, Shown below are CVP income stateinents for each altemative. Voue apweriscorrect Determine the desree of operating leverage for each altemnthe, (Round ontwers to 2 decind plocet es 1.25 . Your answer is comect. Calculate the increase in Net income for each alternative if sales increased by $150,000 due to an increase in the number of units sold Which alternative would produce the higher net income? eTextbook and Media Attempts: 3 of 5 used (c) Calculate the margin of safety ratio for the origenal scenarios in Part 2 . (Round rutios to 2 decimal places, es. 0.25.) Using the margin of safety ratio, determine which altemathe could sustain the greater decline in sales before operating at a loss Casas Modernas of Juarez. Mexico, is contemplating a major change in its cost structure. Currently, alli of its drafting work is performed by skilled draftsmen. Rafael Jiminez Casas's owner, is considering replacing the draftsmen witha competerised drafting system. However, before making the change, Rafael would like to fonow the consequences of the change since the volume of busine-s varies significantiy from year to year, Shown below are CVP income stateinents for each altemative. Voue apweriscorrect Determine the desree of operating leverage for each altemnthe, (Round ontwers to 2 decind plocet es 1.25 . Your answer is comect. Calculate the increase in Net income for each alternative if sales increased by $150,000 due to an increase in the number of units sold Which alternative would produce the higher net income? eTextbook and Media Attempts: 3 of 5 used (c) Calculate the margin of safety ratio for the origenal scenarios in Part 2 . (Round rutios to 2 decimal places, es. 0.25.) Using the margin of safety ratio, determine which altemathe could sustain the greater decline in sales before operating at a loss

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