sanju Dana's Ribbon World makes award rosettes. Following is information about the company:Variable cost per rosetteSales price per rosetteTotal fixed costs per month$ 2.204.003600.00Required:1. Suppose Dana's would like to generate a profit of $980. Determine how many rosettes it must sell to achieve this target profit.2. If Dana's sells 2,900 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 2,900 rosettes.4. a. Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 2,320 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.Req 1Req 2Req 3Req 4AReq 48Calculate Dana's degree of operating leverage if it sells 2,900 rosettes.Note: Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.Degree of Operating Leverage< Req 2Req 4A >

The contribution Margin is calculated as difference between sales and variable cost. The break even…

Answered: Wariable cost per rosette Sales price…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20E

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my work 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 $4 4.00 1100.00 1.80 Required: 1. Suppose Dana's would like to generate a profit of $940. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 890 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 890 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 712 units. 4b. 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. es 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 answers to nearest whole number.) Contribution Margin Income…
This topic is about CVP Analysis. Please check the photo for the problem.
This topic is about CVP Analysis. Please check the photo for the problem. Thank you!
Austin Avenue Clothiers pays $52 each for sports coats and has a fixed monthly cost of $780. The store sells the coats for $71 each. (a) What is the linear cost-volume function C(x)? C(x) = (b) What is the linear revenue function R(x)? R(x) = (c) What is the break-even number of coats? (Round your answer up to the nearest whole number.)
Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $6.50, and each clock sells for $16.00. Required: Calculate Red Hawk's unit contribution margin. Calculate Red Hawk's contribution margin ratio. Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Note: Round your answers to 2 decimal places.
Shalom Company manufactures socks that sell for P60 each. For the coming year, the management estimates fixed costs to be P200,000 and variable costs to be P45 per unit. 1 What is Shalom Company's contribution margin ratio? 2 If the actual sales during the period was P750,000, did the company earn profit or incur loss? Use the underlined words in capital letters as your choice. 3 If in the following period, Shalom Company wants to earn profit of P180,000, how many units should Shalom Company sell?
Windows is a small company that installs windows. Its cost structure is as follows: LOADING... (Click the icon to view the cost structure.) Traylor Windows' breakeven revenues is $1,870,000 and breakeven units is 3,400. Calculate the margin of safety in units and dollars and the margin of safety percentage if Traylor Windows expects to sell 3,600 windows in the year. Begin with calculating the margin of safety in dollars. Determine the formula to calculate the margin of safety in dollars. Then, enter the amounts and calculate the margin of safety in dollars. Budgeted revenue - Breakeven revenue = Margin of safety in dollars - = Next, determine the formula, enter the amounts, and calculate the margin of safety in units. Budgeted units - Breakeven units = Margin of safety in units - = Finally, calculate the margin of safety percentage if…
Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509
Marigold Corp.wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2 per 12 oz. bottle. The following data has been collected: Annual sales Projected selling and administrative costs Desired profit The target cost per bottle is O $0.16. O $0.20. $0.80. O $0.64. 55000 bottles $8900 $66000
Gladstorm Enterprises sells a product for $48 per unit. The varlable cost is $32 per unit, while fxed costs are $10,560. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units units b. Break-even point in sales units if the selling price Increased to $62 per unit units
Homeward Hardware buys cat litter for $6 less 20% per baq. The store's overhead is 45% of cost and the owner requires profit of 20% of cost. 1. For how much should the bags be sold? 2. What is the amount of markup included in the selling price? 3. What is the rate of markup based on selling price? 4. What is the rate of markup based on cost? 5. What is the break-even price? 6. What operating profit or loss is made if a bag is sold for $6?
Given the constant profit margin of 25%, determine the primary or net income for each SKU. Type your answers below. Note: 5th column is for RETURNS FROM CUSTOMERS due to product damages and defects. SKUS QUANTITY SELLING RETURNS NET SOLD PRICE FROM INCOME 1 SPRITE 2L 67 95.00 4 SPRITE 1.5L SPRITE 1L SPRITE 500ML SPRITE 355ML CAN CBTL COFFEE MOCHA 3-in-1 NESCAFE MOCHA LATTE 3-in-1 SAN MIG SUGAR FREE COFFEE 3-in-1 SWISS MISS DARK COCOA MIX 3-in-1 10 SWISS MISS MALLOWS COCOA MIX 3-in-1 2 101 70.00 7 3 59 50.00 4 45 25.00 70 25.00 3 42 30.00 2 7 55 15.00 3 8 90 10.00 5 9. 35 14.00 1 59 12.00 4

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