Bonita Hospital is contemplating an investment in an automated surgical system. Its current process relies on the a numb

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Bonita Hospital Is Contemplating An Investment In An Automated Surgical System Its Current Process Relies On The A Numb 1 (24.62 KiB) Viewed 60 times

Bonita Hospital is contemplating an investment in an automated surgical system. Its current process relies on the a number of skilled physicians. The new equipment would employ a computer robotic system operated by a technician. The company requested an analysis of the old technology versus the new technology. The accounting department has prepared the following CVP income statements for use in your analysis. Sales Variable costs Contribution margin Fixed costs Net income (a) Old Old New $3,167,000 $3,167,000 1,632.850. 1,534,150 1,031,150 New $503,000 690,100 Compute the degree of operating leverage for the company under each scenario. (Round answers to 2 decimal places, e.g. 15.72.) Degree of operating leverage 2,476,900 1.949,900 $527,000.