Casas Modernas of Juarez, Mexico, contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafael liminea, Casas owner, is considering replacing the draftsmen with a computerized drafting system. However, before making the change, Rafael 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 Manual Computerized System System Sales $1,560,000 $1,560,000 Variable costs 1,248,000 624,000 Contribution margin 312,000 936,000 Fixed costs 72.000 696,000 Net income $240,000 $240,000 Calculate the increase in Net income for each alternative if sales increased by $110,000. Increase in Net Income Manual System 22000 Computerized System 66000 Computerized System Which alternative would produce the higher net income? LINK TO TEXT Your answer is partially correct. Try again. Calculate the margh of safety ratio. (Round ratios to 2 decimal places, e.g. 0.25.) Margin of Safety ratio X Manual System 76.92 Computerized System 25.64 CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN Computerized System Which alternative would produce the higher net income? LINK TO TEXT Your answer is partially correct. Try again. Calculate the margin of safety ratio. (Round ratios to 2 decimal places, e.g. 0.25.) Margin of Safety ratio Manual System 76.92 X Computerized System 25.64 Manual System Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. Click if you would like to Show Work for this question: Open Show Work