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Casas Modernas ofJuarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafael Jiminez Casas 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. Manual Computerized Sales Variable costs Contribution margin Fixed costs Net income $1,490,000 1,192,000 298,000 105,742 $192,258 $1,490,000 596,000 894,000 701,742 $192,258 ▼ (a) Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places, e.g. 1.25. Degree of Operating Leverage Manual System Computerized System

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