Cosas Modernas of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled craftsmen Rafael minez, 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 or business varies significantly from year to year. Shown below are CVP income statements for each iterative Manual Computerized System System Sales $1,860,000 51,360,000 Variable costs 1,450,000 744,000 Contribution margin 372,000 1,116,000 Fixed costs 132,000 876,000 Net incerte $240,000 $240,000 your answer is correct Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places, e.g. 1.25.) Degree of Operating Leverage Manual System 1.55 Computerized System 4.65 Calculate the increase in Net Income for each alternative if sales increased by $110,000. Increase in Net Income Manual System Computerized System Which alternative would produce the higher net income? Click if you would like to Show Work for this question: Open Show Work