Please answer these clearly and show step-by-step in how you get the answer please. Thank you!

Problem # Currently, all of its drafting work is performed by skilled draftsmen. Mike Shanahan th replacing the draftsmen with a computerized drafting system 5 10 pts Shanahan Co. of Dublin, Ireland is contemplating a major change in its cost structure. e owner is considering However, before making the change, Mike would like to know the conseque 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 Fixed costs Net income $1,500,000 1,200,000 300,000 150,000 S150,000 $1,500,000 900,000 600,000 450.000 $150,000 Show and label all calculations. Instructions (a) Deter mine the degree of operating leverage for each alternative. Which alternative would produce the higher net income if sales increased by $300,000? Explain why (b)