Carla Vista Arquitectonica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftspersons. Brian Lee, Carla Vista's owner, is considering replacing the draftspersons with a computerized drafting system. However, before making the change, Brian would like to know its consequences. since the volume of business varies significantly from year to yea r. Shown below are CVP income statements for each alternative: Manual System Computerized System Sal es $2,400,000 $2,400,000 Variable costs 1,920,000 1,440,000 Co nt ribution margin 480,000 960,000 Fixed costs 360,000 840,000 Operating inco me $ 120,000 $120,000 Determine the degree of operating leverage for each alternative. [Round answer to 2 decimal places. as. 15.25.} Operating leverage Manual System Computerized System Calculatewhich alternative would produce the higher operating income if sales increased by $120,000. V would produce a higher operating income. Using the margin of safety ratio. determine which alternative could sustain the greater decline in sales before operating at a loss. [Round margin of safety ratio to 2 decimal places, 2,3. 152595.} Margin of Safety Ratio Manual % Computerized 9'3 V could sustain the greater decline in sales before operating at a loss