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 $ 1,860,000 $ 1,860,000 Variable costs 1.488.000 744,000 372.000 1,116,000 Contribution margin Fixed costs 2,000 876,000 Net income $ 240,000 $ 240,000 (a) Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places, eg 1.25.) Degree of Operating Leverage Manual System Computerized System eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later Using multiple attempts will impact your score. 5% score reduction after attempt 2