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. Sales Variable costs Contribution margin Fixed costs Net income Manual System $1,740,000 1,392,000 348,000 108,000 $240,000 Computerized System $1,740,000 696,000 1,044,000 804,000 $240,000 - Your answer is partially correct. Calculate the margin of safety ratio. (Round ratios to 2 decimal places, e.g. 0.25.) Margin of Safety ratio Manual System 68.97 Computerized System 22.99 Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. Manual System e Textbook and Media Save for Later Attempts: 1 of 4 used Submit