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Dana's Ribbon World makes award rosettes. Following is information about the company: Required: Suppose Dana's would like to generate a profit of $1, 200. Determine
Dana's Ribbon World makes award rosettes. Following is information about the company: Required: Suppose Dana's would like to generate a profit of $1, 200. Determine how many rosettes it must sell to achieve this target profit. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) If Dana's sells 2, 220 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. (Round your Margin of Safety percentage to two decimal places (i.e. 1234 should be entered as 12.34%). Calculate Dana's degree of operating leverage if it sells 2, 220 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 1, 998 units. Confirm this by preparing a new contribution margin income statement. (Round your Intermediate calculations to 4 decimal places and final answer to 2 decimal places, (i.e. 1234 should be entered as 12.34%.)) Effect on Profit _% Contribution Margin Income Statement For 1998 Rosettes Contribution Margin Income from Operations
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