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pecision-Making Across the Organization TS 1 E-Z Seats manufactures swivel seats for customized vans. It...

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pecision-Making Across the Organization TS 1 E-Z Seats manufactures swivel seats for customized vans. It currently manufactures 10,000 ools per year, which it sells for $500 per seat. It incurs variable costs of $200 per seat and fixed costs of $2,000,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $3,000,000, and its variable costs will decline to $100 per seat. Instructions With the class divided into groups, answer the following questions. bare quo a. Prepare a CVP income statement based on current activity. b. Compute the contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage based on current activity. c. Prepare a CVP income statement assuming that the company invests in the automated upholstery system. d. Compute the contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage assuming the new upholstery system is implemented

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