Saved apter 6) Lobster Trap Company is considering automating its manufacturing facility. C automation follows: Before After Automation $206,000 42,000 Automation Sales revenue $206,000 99,000 Less: Variable cost Contribution margin $164,000 57,000 $107,000 Less: Fixed cost 9,000 Net operating income $ 88,000 $107,000 3:54 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automatic 2. Compute Lobster Trap's degree of operating leverage before and after auto Ok Complete this question by entering your answers in the tabs below. SODua Required 1 Required 2 Calculate Lobster Trap's break-even sales dollars before and after automation. (Rou decimal places and final answers to 2 decimal places.) Break-Even Sales Dollars Before Automation Break-Even Sales Dollars After Automation Required 2 <> raw ducation
Saved apter 6) Lobster Trap Company is considering automating its manufacturing facility. C automation follows: Before After Automation $206,000 42,000 Automation Sales revenue $206,000 99,000 Less: Variable cost Contribution margin $164,000 57,000 $107,000 Less: Fixed cost 9,000 Net operating income $ 88,000 $107,000 3:54 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automatic 2. Compute Lobster Trap's degree of operating leverage before and after auto Ok Complete this question by entering your answers in the tabs below. SODua Required 1 Required 2 Calculate Lobster Trap's break-even sales dollars before and after automation. (Rou decimal places and final answers to 2 decimal places.) Break-Even Sales Dollars Before Automation Break-Even Sales Dollars After Automation Required 2 <> raw ducation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Saved
apter 6)
Lobster Trap Company is considering automating its manufacturing facility. C
automation follows:
Before
After
Automation
$206,000
42,000
Automation
Sales revenue
$206,000
99,000
Less: Variable cost
Contribution margin
$164,000
57,000
$107,000
Less: Fixed cost
9,000
Net operating income
$ 88,000
$107,000
3:54
Required:
1. Calculate Lobster Trap's break-even sales dollars before and after automatic
2. Compute Lobster Trap's degree of operating leverage before and after auto
Ok
Complete this question by entering your answers in the tabs below.
SODua
Required 1
Required 2
Calculate Lobster Trap's break-even sales dollars before and after automation. (Rou
decimal places and final answers to 2 decimal places.)
Break-Even Sales Dollars Before Automation
Break-Even Sales Dollars After Automation
Required 2
<>
raw
ducation
<Prev
6 of 7
Transcribed Image Text:napter 6) 6
Saved
Lobster Trap Company is considering automating its manufacturing facility. Compa
automation follows:
Before
Automation
$206,000
After
Automation
Sales revenue
$206,000
42,000
Less: Variable cost
99,000
$107,000
19,000
$ 88,000
Contribution margin
$164,000
Less: Fixed cost
57,000
Net operating income
$107,000
8:46
ed
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
ok
Complete this question by entering your answers in the tabs below.
Fences
Required 1
Required 2
Compute Lobster Trap's degree of operating leverage before and after automation. (Rounc
DOL Before Automation
DOL After Automation
Required 1
< Prev
6 of 7
ucation
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