Help please

E6-158 Border Drafting of Tijuana, Mexico, is contemplating a major change in its cost strue- ture. Currently, all of its drafting work is performed by skilled draftsmen. Manny Hernandez, ICRIN OF Border's owner, is considering replacing the draftsmen with a computerized drafting sys- tem. However, before making the change Manny 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 Computerized System System Sales $1,600,000 $ 1.600,000 Variable costs 1,200,000 1,000,000 Contribution margin 400,000 600,000 Fixed costs 300,000 500.000 Net income 100,000 100,000 Instructions (a) Determine the degree of operating leverage for each alternative. (b) Which alternative would produce the higher net income if sales increased by $200,000? (c) Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before operating at a loss (Round to 2 decimal places). hat specialize in the produc