Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income. Before Automation $ 195,000 95,000 $ 100,000 11,000 $ 89,000 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. Required 1 Required 2 Complete this question by entering your answers in the tabs below. After Automation $ 195,000 39,000 $ 156,000 56,000 $ 100,000 DOL Before Automation DOL After Automation Compute Lobster Trap's degree of operating leverage before and after automation. Note: Round your answers to 4 decimal places. < Required 1 Required 2 >

Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income. Before Automation $ 195,000 95,000 $ 100,000 11,000 $ 89,000 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. Required 1 Required 2 Complete this question by entering your answers in the tabs below. After Automation $ 195,000 39,000 $ 156,000 56,000 $ 100,000 DOL Before Automation DOL After Automation Compute Lobster Trap's degree of operating leverage before and after automation. Note: Round your answers to 4 decimal places. < Required 1 Required 2 >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2.) find the efficiency rate 4.) find the overall equitment effectiveness
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