E6-12 (Algo) Calculating Target Profit, Margin of Safety, Degree of Operating Leverage (LO 6-2, 6-3, 6 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 $ 1.2e 3.00 3600.00 Required: 1. Suppose Dana's would like to generate a profit of $860. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 2.450 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 2,450 rosettes. 4. Using the degree of operating leverage calculate the change in Dana's profit if unit sales drop to 2.205 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. Reg 1 Reg 2 Reg 3 Reg 4 Red 48 Suppose Dana's would like to generate a profit of $860. 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 Units Reg 2 > Complete this question by entering your answers in the tabs below. Reg 1 Relea Reg 3 Reg 4A Reg 4B If Dana's sells 2,450 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 % Proy 5 of 6 il Next Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3 Reg 4 Reg 48 N Calculate Dana's degree of operating leverage if it sells 2,450 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4 Req 48 Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,205 units. (Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places. (...1234 should be entered as 12.34%.)) Effect on Profit Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4A Reg 4B 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 2,205 Rosettes I Contribution Margin Income from Operations
