Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $ 2.00 6.00 6000.00 Required: 1. Suppose Dana's would like to generate a profit of $1120. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 2.340 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 2.140 rosettes 4. Using the degree of operating leverage calculate the change in Dana's profitif unit sales drop to 1819 units. 46. Prepare a new contribution margin income statement to verity change in dona's profit. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Reg 45 Suppose Dana's would like to generate a profit of $1,120. Determine how many rosettes it must sell to achieve this target profit. (Round your intermediate calculations to 2 decimal places and round your final answer up to nearest whole number) Targot Unis Req 1 Reg 2 Reg 3 Req 4A Reg 4B If Dana's sells 2,140 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Round your Margin of Safety percentage to two decimal places (le. 0.1234 should be entered as 12.34%.)) Rosettes Margin of Safety (Units) Margin of Safety in Dollars Percentage of Sales Reg 1 Reg 2 Reg 3 Req 4A Reg 4B Calculate Dana's degree of operating leverage if it sells 2,140 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage Reg 1 Reg 2 Reg 3 Reg 4A Req 45 Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 1,819 units. (Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places. (.e. 1234 should be entered as 12.04 >> Elloc on Profit 2.1 Dana's sells 2,140 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 2140 rosettes 4o. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 1,819 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. Reg 48 Reg 1 Req2 Reg 3 Reg 4 Prepare a new contribution margin income statement to verify change in dana's profit. (Round your answers to nearest whole number) Contribution Margin Income Statement For 1,819 Rosettes Cost of Goods Sold Fixed Costs Gross Margin Interest Expense Income from Operations Reg 1 Reg 2 Reg 3 Reg 4 Reg 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 Statement For 1,819 Rosettes Contribution Margin Income from Operations PA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ACCA Advanced Audit And Assurance

Authors: Nick Blackwell, Annabel Lefton, Emile Woolf International

1st Edition

ISBN: 1848434715, 978-1848434714

More Books

Students also viewed these Accounting questions

Question

=+What is one possible reason for the differences?

Answered: 1 week ago