Exercise 6-15 (Part Level Submission) 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. Manual System Computerized System Sales Variable costs Contribution margin $1,800,000 1,440,000 360,000 120,000 $1,800,000 720,000 1,080,000 840,000 $240,000 Fixed costs Net income $240,000 (c) Your answer is partially correct. Try again. Calculate the margin of safety ratio. (Round ratios to 2 decimal places, e.g. 0.25.) Margin of Safety ratio X ............... 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. Manual System - Click if you would like to Show Work for this question: Open Show Work