Danas Ribbon World makes award rosettes. Following is information about the company:

Variable cost per rosette	$	1.60
Sales price per rosette		3.00
Total fixed costs per month		889.00

Required:
1.	Suppose Danas would like to generate a profit of $800. Determine how many rosettes it must sell to achieve this target profit. (Round your intermediate calculations to 2 decimal places and finalanswer up to next whole number.)

2.	If Danas sells 1,100 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. (Round your intermediate calculations, Margin of Safety in Dollars and percentage answers to 2 decimal places.)

3.	Calculate Danas degree of operating leverage if it sells 1,100 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.)

4.	Using the degree of operating leverage, calculate the change in Danas profit if unit sales drop to 935 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.)