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Wariable cost per rosette Sales price per rosette Total fixed costs per month quired: Suppose Dana's would like to generate a profit of $980. Determine how many rosettes it must sell to achieve this target profit.. If Dana's sells 2,900 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. Calculate Dana's degree of operating leverage if it sells 2,900 rosettes. 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. Following is information about the company: $ 2.20 4.00 3600.00 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Calculate 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.

Wariable cost per rosette Sales price per rosette Total fixed costs per month quired: Suppose Dana's would like to generate a profit of $980. Determine how many rosettes it must sell to achieve this target profit.. If Dana's sells 2,900 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. Calculate Dana's degree of operating leverage if it sells 2,900 rosettes. 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. Following is information about the company: $ 2.20 4.00 3600.00 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 Calculate 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.

FINANCIAL ACCOUNTING
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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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 $ 2.20 4.00 3600.00 Required: 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 1 Req 2 Req 3 Req 4A Req 48 Calculate 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 2 Req 4A >
Transcribed Image Text: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 $ 2.20 4.00 3600.00 Required: 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 1 Req 2 Req 3 Req 4A Req 48 Calculate 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 2 Req 4A >
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