please help will upvote if correct
Cullumber Modernas of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmenRafael Jiminez, Cullumber's 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 Computerized System $1,860,000 Sales $1,860,000 Variable costs 1,488,000 744,000 Contribution margin 372,000 1,116,000 Fixed costs 132,000 876.000 Net income $240.000 $240,000 a) Your answer is correct. Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places, eg. 1.25.) Degree of Operating Leverage Manual System 1.55 Computerized System 465 Assistance Used e Textbook and Media R Attempts: 2 of 3 used (b) Calculate the increase in Net income for each alternative if sales increased by $125,000 due to an increase in the number of units sold. Increase in Net Income Manual System Computerized System Which alternative would produce the higher net income? Computerized System e Textbook and Media Assistance Used Attempts:0 of 3 used Submit Answer State Last saved 2 hours ago Saved work will be auto submitted on the due date. Auto submission can take up to 10 minutes Using multiple attempts will impact your score. 1096 score reduction after attempt 2 mework 1.33/4 uestion 6 of 9 Attempts: 0 of 3 used Submit Answer Save for Later Last saved 2 hours ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Using multiple attempts will impact your score, 10% score reduction after attempt 2 (c) Calculate the margin of safety ratio for the original scenarios in Parta. (Round ratios to 2 decimal places, 23. 0.25.) Margin of Safety ratio Manual System Computerized System Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss