Casas Modernas of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen, Rafael Jiminez, 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 System Computerized System Sales $1,560,000 $1,560,000 Variable costs 1,248,000 624,000 312,000 936,000 Contribution margin Fixed costs 72.000 696,000 Net income $240,000 $240,000 Calculate the margin of safety ratio. (Round ratios to 2 decimal places, c.8. 0.25.) Margin of Safety ratio Manual System Computerized System Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. Manual System