Novak Co. is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled drafters. Mike Novak the owner, is considering replacing the drafters with a computerized drafting system. However, before making the change, Mike 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 $1,500,000 $1,500,000 Variable costs 1,200,000 900,000 Contribution margin 300,000 600,000 Fixed costs 150,000 450.000 Net income $150,000 $150,000 (a) Determine the degree of operating leverage for each alternative. Degree of Operating Leverage Manual system Computerized system