Exercise 19-15 Casas Modernas of Juaroz, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafacl Jimincz, Casas' owner, is considering replacing the draftsmen with a computerized drafting system. ever, 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. S1,500,000 600,000 900,000 700,000 $200,000 Sales Variable costs 1,500,000 1.50 1,200,00 margin Fixed costs Net incomc 300,000 100,000 200,000 Your answer is incorrect. Try again 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 Computerized System LINK TO TEXT Kl Your answer is incorrect. Try again. Calculate the incrcase in Net income for coch alternative if sales increased by $1S0,000. Increase in Net Income Manual System Computerized System Which altemative would produce the higher net income? LINK TO TEXT Your answer is incorrect. Try again. Calculate the margin of safety ratio. (Round ratios to 2 decimal places, e.g. 0.25.) Margin of Safety ratio Manual System Computerized System Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss