Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette...
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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 Required: $ 2.00 5.00 1500.00 1. Suppose Dana's would like to generate a profit of $1,000. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 1,500 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 1,500 rosettes. 4. a. Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 1,200 units. b. Prepare a new contribution margin income statement to verify change in Dana's profit. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Suppose Dana's would like to generate a profit of $1,000. Determine how many rosettes it must sell to achieve this target profit. Note: Round your intermediate calculations to 2 decimal places and round your final answer up to nearest whole number. Target Units Req 1 Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 If Dana's sells 1,500 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Round your Margin of Safety percentage to two decimal places (i.e. 0.1234 should be entered as 12.34%.). Margin of Safety (Units) Margin of Safety in Dollars Margin of Safety Percentage Rosettes % 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 Required: $ 2.00 5.00 1500.00 1. Suppose Dana's would like to generate a profit of $1,000. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 1,500 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 1,500 rosettes. 4. a. Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 1,200 units. b. Prepare a new contribution margin income statement to verify change in Dana's profit. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Suppose Dana's would like to generate a profit of $1,000. Determine how many rosettes it must sell to achieve this target profit. Note: Round your intermediate calculations to 2 decimal places and round your final answer up to nearest whole number. Target Units Req 1 Req 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 48 If Dana's sells 1,500 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number. Round your Margin of Safety percentage to two decimal places (i.e. 0.1234 should be entered as 12.34%.). Margin of Safety (Units) Margin of Safety in Dollars Margin of Safety Percentage Rosettes %
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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