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 $ 1.80 4.00 1100.00 Required: 1. Suppose Dana's would like to generate a profit of $940. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 890 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 890 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 712 units. 4b. Prepare a new contribution margin income statement to verify change in dana's profit. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 4A Reg 4B Calculate Dana's degree of operating leverage if it sells 890 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage Dana's Ribbon World makes award rosettes. Following is information about the company: 1.80 Variable cost per rosette Sales price per rosette Total fixed costs per month 4.00 1100.00 Required: 1. Suppose Dana's would like to generate a profit of $940. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 890 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 890 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 712 units. 4b. Prepare a new contribution margin income statement to verify change in dana's profit. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Req Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 712 units. (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 % Required: 1. Suppose Dana's would like to generate a profit of $940. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 890 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 890 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 712 units. 4b. Prepare a new contribution margin income statement to verify change in dana's profit. X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4A 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 712 Rosettes Contribution Margin Income from Operations
