Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed...
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Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost After Before Automation Automation $ 188,000 44,000 $ 188,000 88,000 $ 100,000 18,000 Net operating income $82,000 Contribution margin Less: Fixed cost 144,000 63,000 $81,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost After Before Automation Automation $ 188,000 44,000 $ 188,000 88,000 $ 100,000 18,000 Net operating income $82,000 Contribution margin Less: Fixed cost 144,000 63,000 $81,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost After Before Automation Automation $ 188,000 44,000 $ 188,000 88,000 $ 100,000 18,000 Net operating income $82,000 Contribution margin Less: Fixed cost 144,000 63,000 $81,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost After Before Automation Automation $ 188,000 44,000 $ 188,000 88,000 $ 100,000 18,000 Net operating income $82,000 Contribution margin Less: Fixed cost 144,000 63,000 $81,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost After Before Automation Automation $ 188,000 44,000 $ 188,000 88,000 $ 100,000 18,000 Net operating income $82,000 Contribution margin Less: Fixed cost 144,000 63,000 $81,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost After Before Automation Automation $ 188,000 44,000 $ 188,000 88,000 $ 100,000 18,000 Net operating income $82,000 Contribution margin Less: Fixed cost 144,000 63,000 $81,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation.
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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