Sheridan Arquitectnica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently,...
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Sheridan Arquitectnica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftspersons. Steven Garcia, Sheridan's owner, is considering replacing the draftspersons with a computerized drafting system. However, before making the change, Steven would like to know its consequences, since the volume of business varies significantly from year to year. Shown below are CVP income statements for each alternative: Determine the degree of operating leverage for each alternative. (Round answer to 2 decimal places, e.g. 15.25.) eTextbook and Media


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