Current Attempt in Progress 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 draftsmer 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 Computerized System System Sales $1,620,000 $1,620,000 Variable costs 1.296,000 648,000 Contribution margin 324,000 972.000 84,000 732.000 Fixed costs $240.000 $240,000 Net income (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 Si e Textbook and Media Attempts: 0 of 15 used