Oriole Arquitectnica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftspersons. William Brown, Oriole's owner, is considering replacing the draftspersons with a computerized drafting system. However, before making the change, William would like to know its consequences, since the volume of business varies significantly from year to year. Shown below are CVP income statements for each alternative: - Your answer is incorrect. Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. (Round margin of safety ratio to 2 decimal places, e.g. 15.25\%.) could sustain the greater decline in sales before operating at a loss. Crane Inc. earned operating income of $82,000 during 2021. The company wants to earn operating income of $114,800 during 2022 . Its fixed costs are expected to be $45,920, and variable costs are expected to be 30% of sales. (a) Determine the required sales to meet the target operating income during 2022. Required sales View Policies Show Attempt History Current Attempt in Progress The following CVP income statements are available for Blossom Company and Crane Company: Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25\%.)