Crane 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, Crane's 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.

$\backslash$table$[[,\backslash$table$[[$Manual$],[$System$]],,\backslash$table$[[$Computerized$],[$System$]]],[$Sales$,$$$1,560,000,,$$$1,560,000$

Question A: determine the degree of operating leverage for each alternative $($manual labor and computerized system$)$

Question B: calculate the increase in net income for each alternative if sales increased by $$121,000$ due to an increase in the number of units sold $($Manual labor and computerized system$)$

Question C: calculate the margin of saftey ratio for the original scenerios in Part A

Question D: using margin of ratio, determine which alternative could sustain the greater decline in sales before operating at a loss $($computerized system or manual system$)$