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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
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 $1.60 4.00 200.00 Required 1. Suppose Dana's would like to generate a profit of $920. 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.) et Units 2. If Dana's sells 870 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%). Margin of Safety (Units) Margin of Safety in Dollars Percentage of Sales Rosettes 3. Calculate Dana's degree of operating leverage if it sells 870 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) e of Operating Leverage 4. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 696 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 696 Rosettes Contribution Margin Income from Operations
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