E-Z Seats manufactures swlvel seats for customized vans. It currently manufactures 10,000 seats per year, which it sells for $500 per seat. It incurs variable costs of $200 per seat and fxed costs of $2,000,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $3,000,000, and its variable costs will decline to $100 per seat. The contribution margin ratio, break-even point in dolars, margin of safety ratio, and degree of operating leverage based on current activity is as follows: Contribution margin ratio Break-even point in dollars Margin of safety ratio Degree of operatig leverage 60.00 % $3333333 33.30 % 3.00 Assuming the new upholstery system is implemented the contribution margin ratio, break-even point in dolars, margin of safety ratio, and degree of operating leverage is as follows 80.00 % Contribution margin ratio Break-even point in dollars Margin of safety ratio Degree of operating leverage $3750000 25.00 % 4.00 Discuss the implications of adopting the new system