Illustrate which alternative would produce the higher

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Reference no: EM13129818

Imagen Arquitectonica of Tijuana, Mexico is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Alfredo Ayala, Imagen's owner, is considering replacing the draftsmen with a computerized drafting system.
However, before making the change Alfredo 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.

Which alternative would produce the higher net income if sales increased by $100,000?
Manual System $
Computerized System $

Reference no: EM13129818

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