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Dana's Ribbon World makes award rosettes. Following is information about the company; Suppose Dana's would like to generate a profit of $800. Determine how many
Dana's Ribbon World makes award rosettes. Following is information about the company; Suppose Dana's would like to generate a profit of $800. Determine how many rosettes it must sell to achieve this target profit. (Round your final answer to the nearest whole number.) If Dana's sells 1, 100 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 Danas degree of operating leverage if it sells 1, 100 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 935 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%.))
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