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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
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 Sales price per rosette Total fixed costs per month 6000.00 Required: 1. Suppose Dana's would like to generate a profit of $1,120. Determine how many rosettes it must sell to achieve this target profit. 2. I Dana's sells 2.540 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 2140 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 1819 units 4b. 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. Re Req2 Reg 3 Reg 4 Reg 48 Suppose Dana's would like to generate a profit of $1,120. Determine how many rosettes it must sell to achieve this target profit. (Round your intermediate calculations to 2 decimal places and round your final answer up to nearest whole number.) Target Us Reg 2 > MacBook Air so S 4 5 7 8 9 W E R T Y U 0 F F G H J K V B NM Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Req 48 If Dana's sells 2,140 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales. (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 (.e. 0.1234 should be entered as 12.34%.)) Rosettes Margin of Safety (Units) Margin of Safety in Dollars Percentage of Sales ( Req1 Req3 > MacBook Air 30 See & $ 4 2 3 5 6 7 8 9 W E R T Y U 0 s D F G H J I K K X C V B N M 3 Complete this question by entering your answers in the tabs below. Req1 Req2 Tveg 3 Req 4A Reg 48 Calculate Dana's degree of operating leverage if it sells 2,140 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage MacBook Air DOO % & 2 3 S 4 5 6 7 8 9 W E R . Y U " 0 S D F G H J K L X C MacBook Air So 999 + 3 $ 4 2 . 5 6 7 9 0 W E R T Y U 0 S D F G H J K X C V B N. M mmand commi Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4A Req Prepare a new contribution margin income statement to verify change in dana's profit. (Round your answers to nearest whole number) Contribution Margin Income Statement For 1,819 Rosettes Contribution Margin MacBook Air 30 FS $ % & 2 3 4 6 7 8 9 0 W E R T Y U 0 S D F G . J K L X V B N M 3 98 mmand come
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