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Dana's Ribbon World makes award rosettes. Following is information about the company: Required: 1. Suppose Dana's would like to generate a profit of $1,080. Determine
Dana's Ribbon World makes award rosettes. Following is information about the company: Required: 1. Suppose Dana's would like to generate a profit of $1,080. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 2,100 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 2,100 rosettes. 4. a. Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 1,848 units. b. Prepare a new contribution margin income statement to verify change in Dana's profit
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