E6-12 (Algo) Calculating Target Profit, Margin of Safety, Degree of Operating Leverage [LO 6-2, 6-3, 6-4, 6-5] Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette $ 2.80 Sales price per rosette 6.00 Total fixed costs per month 3200.00 Required: 1. Suppose Dana's would like to generate a profit of $1100. Determine how many rosettes it must sell to achieve this target profit. 2.1f Dana's sells 2120 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 2120 rosettes. 4. a. Using the degree of operating leverage, calculate the percentage change in Dana's profit if unit sales drop to 1,802 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. Req3 I Reqgaal Il Req4p \\ Al If Dana's sells 2,120 rosettes, compute its marin 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%.). Margn of Saety (Uns R Margin of Safety in Dollars [ & e 7 | Margin of Safety Percentage . 0 o b - bl E: (%} A