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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 $ 2.00 4.00 3000.00 Required: 1. Suppose Dana's would like to generate a profit of $960. 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.) Target Units 1,980 2. If Dana's sells 1,900 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%). 400 Rosettes Margin of Safety (Units) Margin of Safety in Dollars Percentage of Sales $ 1,600 21.05% 3. Calculate Dana's degree of operating leverage if it sells 1,900 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage 4. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 1,520 units. Confirm this calculations to 4 decimal places and final answer to 2 decimal places. (i.e. 1234 should be entered as 12.34%.)) preparing a new contribution margin income statement. (Round your intermediate Effect on Profit % Contribution Margin Income Statement For 1520 Rosettes Contribution Margin Income from Operations
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