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 $1,860,000 1,488,000 Computerized System $1,860,000 744,000 Sales Variable costs Contribution margin Fixed costs Net income 372,000 132,000 $240,000 1,116,000 876,000 $240,000 *(a) 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 11.55 Manual System Computerized System 4.65 Attempts: 1 of 3 used *(b) Your answer is partially correct. Try again. Calculate the increase in Net income for each alternative if sales increased by $125,000. Increase in Net Income Manual System 25400 Computerized System 76200 Which alternative would produce the higher net income ? Computerized System Attempts: 1 of 3 used *c) The parts of this question must be completed in order. This part will be available when you complete the part above