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Dana's Ribbon World makes award rosettes. Following is information about the company. 0.9 points Variable cost per rosette Sales price per rosette Total fixed costs
Dana's Ribbon World makes award rosettes. Following is information about the company. 0.9 points Variable cost per rosette Sales price per rosette Total fixed costs per month $ 1.50 3.00 3000.00 Required: 1. Suppose Dana's would like to generate a profit of $840. Determine how many rosettes it must sell to achieve 2. If Dana's sells 3,200 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of 3. Calculate Dana's degree of operating leverage if it sells 3,200 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 un 4b. Prepare a new contribution margin income statement to verify change in dana's profit. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4A Reg 4B If Dana's sells 3,200 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Round your Marg percentage to two decimal places (.e. 0.1234 should be entered as 12.34%.)) Rosettes Margin of Safety (Units) Margin of Safety in Dollars Percentage of Sales $ 1,200 3,600 40.00 % Dana's Ribbon World makes award rosettes. Following is Information about the company 0.9 points Variable cost per rosette Sales price per rosette Total fixed costs per month $ 1.50 3.00 3000.00 Required: 1. Suppose Dana's would like to generate a profit of $840. Determine how many rosettes it must sell to achieve 2. If Dana's sells 3,200 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of 3. Calculate Dana's degree of operating leverage if it sells 3,200 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 un 4b. Prepare a new contribution margin income statement to verify change in dana's profit. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Red 4A Req 48 Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 units. (Rour Intermediate calculations to 4 decimal places and final answer to 2 decimal places. Ce..1234 should be entered as Effect on Profit (60.00) %
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