Chapter 6 Homework Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2 Dana's Ribbon World makes award rosettes. Following is information about the company: 1.5 points $ 1.60 Variable cost per rosette Sales price per rosette Total fixed costs 3.00 889.00 per month Required: 1. Suppose Dana's would like to generate a profit of $800. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 1,100 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 1,100 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 935 units. 4b. Prepare a new contribution margin income statement to verify change in dana's profit. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Req 4A Req 4B Calculate Dana's degree of operating leverage if it sells 1,100 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage 2.3655 X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Prepare a new contribution margin income statement to verify change in dana's profit. (Round your intermediate calculations to 2 decimal places.) Contribution Margin Income Statement For 935 Rosettes Sales Revenue $ 2,805 Variable Costs 1,496 $ Contribution Margin Fixed Costs Net Income After Taxes 1,309 889 X 420X Income from Operations