Tasty Time Cafeteria operates cafeteria food services in public buildings in the Midwest. Tasty Time 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, Tasty Time's 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 ServiceSystem. Automated Self-Service System

Sales. $2,500,000 $2,500,000

Variable costs 1,875,000 1,125,000

Contribution margin. $625,000 $1,375,000

Fixed costs. 125,000 875,000

Net Income $500,000 $500,000

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.)

Personal Service System Automated Self-Service System

Margin of safety ratio

could sustain the greater decline in sales before operating at a loss.