Splish Brothers Cafeteria operates cafeteria food services in public buildings in the Midwest. Splish Brothers is contemplating a major change in its cost structure. Currently, all of their cafeteria lines are staffed with hourly wage employees who hand serve the food to customers. Benson Riggs, Splish Brotherss owner, is considering replacing the employees with an automated self-service system. However, before making the change, Benson would like to know the consequences of the change, since the volume of business varies significantly from location to location. Shown below are the CVP income statements for each alternative.

		Personal Service		Automated Self-Service
		System		System
Sales		$2,830,000				$2,830,000
Variable costs		2,122,500				1,415,000
Contribution margin		$707,500				$1,415,000
Fixed costs		141,500				849,000
Net Income		$566,000				$566,000

Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss. (Round answers to 2 decimal places, e.g. 0.25.)

Margin of safety ratio

Personal Service System _____________

Automated Self-Service System _____________

enter ratio rounded to 2 decimal places enter ratio rounded to 2 decimal places