Blue Spruce Cafeteria operates cafeteria food services in public buildings in the Midwest. Blue Spruce is contemplating a major change in its cost structure. Currently, all of their cafeteria lines are staffed with hourly wage employees who hand serve the food to customers. Benson Riggs, Blue Spruce's owner, is considering replacing the employees with an automated self-service system. However, before making the change, Benson would like to know the consequences of the change, since the volume of business varies significantly from location to location. Shown below are the CVP income statements for each alternative. Personal Service System Automated Self-Service System Sales $2,690,000 $2,690,000 Variable costs 2,152,000 1,076,000 Contribution margin $538,000 $1,614,000 Fixed costs 134,500 1,210,500 Net Income $403,500 $403,500 Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places, e.g. 15.25.) Personal Service System Automated Self-Service System Operating leverage 1.33 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, eg. 0.25.) Personal Service System Automated Self-Service System Margin of safety ratio Personal service system could sustain the greater decline in sales before operating at a loss