accounting 102

Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. (Round answers to 2 decimal places, e.g. 0.25.) Personal Service System Automated Self-Service System Margin of safety ratio could sustain the greater decline in sales before operating ata loss. eTextbook and Media Tasty Time's vice president of finance has offered another option. He suggests a different system that combines personal service at key points in the cafeteria line with a less expensive automated self -service system for the other items. The financial information on this system is given below: Blended Service System $1,950,000 Sales Variable costs 1,170,000 Contribution margin $780,000 Fixed costs 390,000 $390,000 Net Income Determine the degree of operating leverage for this option. (Round answer to 2 decimal places, e.g. 15.25.) Operating leverage