6-5] Dana's Ribbon World makes award rosettes. Following is information about the company. Variable cost per...
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6-5] Dana's Ribbon World makes award rosettes. Following is information about the company. Variable cost per rosette Sales price per rosette Total fixed costs per month Required: $1.60 4.00 1200.00 1. Suppose Dana's would like to generate a profit of $920. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 870 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. 3. Calculate Dana's degree of operating leverage if it sells 870 rosettes. 4. a. Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 696 units. b. Prepare a new contribution margin income statement to verify change in Dana's profit. Complete this question by entering your answers in the tabs below. Reg 11 Req 21 Req 3 Req 4A Req 48 Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 696 units. Note: Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places. (.e. 0.1234 should be entered as 12.34%). Change in Profit 20:00 % Complete this question by entering your answers in the tabs below. Req 11 Req 2 Req 3 Req 4A Req 48 Prepare a new contribution margin income statement to verify change in Dana's profit. Note: Do not round your Intermediate calculations. Round your answers to nearest whole number. Ensure to enter loss amount with a minus sign. Contribution Margin Income Statement For 695 Rosettes Contribution Margin Income from Operations 6-5] Dana's Ribbon World makes award rosettes. Following is information about the company. Variable cost per rosette Sales price per rosette Total fixed costs per month Required: $1.60 4.00 1200.00 1. Suppose Dana's would like to generate a profit of $920. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 870 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. 3. Calculate Dana's degree of operating leverage if it sells 870 rosettes. 4. a. Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 696 units. b. Prepare a new contribution margin income statement to verify change in Dana's profit. Complete this question by entering your answers in the tabs below. Reg 11 Req 21 Req 3 Req 4A Req 48 Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 696 units. Note: Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places. (.e. 0.1234 should be entered as 12.34%). Change in Profit 20:00 % Complete this question by entering your answers in the tabs below. Req 11 Req 2 Req 3 Req 4A Req 48 Prepare a new contribution margin income statement to verify change in Dana's profit. Note: Do not round your Intermediate calculations. Round your answers to nearest whole number. Ensure to enter loss amount with a minus sign. Contribution Margin Income Statement For 695 Rosettes Contribution Margin Income from Operations
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