View Polides Show Attempt Hstery Current Attempt in Progress 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 Rigas. 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. Sale Variable costs Contribution margin Fried costs Net Income Personal Service System $2.310.000 1732500 5577.500 115.500 5462.000 Automated Self-Service System 52.310.000 1.155,000 $1,155.000 693.000 $462.000 Your answer is correct Determine the degree of operating leverage for each alternative. (Round answers to 2 decimal places. 8.15.25.) Personal Service System Automated Self-Service System Operating leverage e Tetbook and Media Your aver is correct Whichte would produce the higher net income if sales increased by 5231000? The would produce the higher net income e Tecbook and Media - Your answer is partially correct Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at loss. (Round answers to 2 decimal places, 23. 0.25.) Personal Service System Automated Self-Service System Margin of safety ratio 40 Personal services could sustain ain the greater decline in sales before operating at a loss. eTextbook and Media Your answer is correct. Tasty Tim's vice president of Finance has offered another option. He suggests a different system that combines personal service at kay points in the cafeteria line with a less expensive automated self-service system for the other items. The financial Information on this systemispven below Blended Service System Sales 52.310,000 1,386,000 Contribution margin $924,000 Facts 462.000 $462.000 De the degree of operating leverage for this option round answer to 2 decimal places 15.25) Drenge extbook and Media How much would needy 23.00 hodepos 12 Tube Maps Conjugation cammi... Mesoamerica, an in... G New Tab Determine the degree of operating leverage for this option (Round answer to 2 decimal places, 6. 15.25) Operating leverage eTextbook and Media Your ander is correct How much would net income increase sales increased by $231.000 (Round answer to decimal places15.25%) Net Income 20 eTextbook and Media X Your awer is incorrect Using the margin of safety ratio how large of a decline in sales.could this option sustain before operating atalos (Round margin of safety ratio to 2 decimal places, 0.25) Margin of safety ratio Dedingins Textbook and Media Whicho do your command for Tasty Time Clear