Question 9 Casas Modernas of uarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafael Jiminez, Casas 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 Sales Variable costs Contribution margin Fixed costs Net income $1,740,000 1,392,000 348,000 108,000 $240,000 $1,740,000 696,000 1,044,000 804,000 $240,000 Your answer is correct. Determine the degree of operating leverage for each aternative. (Round answers to 2 decimal places, e.g. 1.25) Degree of Operating Leverage Manual System Computerized System SHOW SOLUTION SHOW Your answer is partially correct. Try again. Calculate the increase in Net income for each alternative if sales increased by $150,000. Increase in Net Income Manual System Computerized System Computerized Systemv Which alternative would produce the higher net income? LINK TO TEXT Your answer is partially correct. Try again. Calculate the margin of safety ratio. (Round ratios to 2 decimal places, e.g. o.25.) Margin of Safety ratio Manual System Computerized System