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 5 2.50 6.ee 7eee.ee Required: 1. Suppose Dana's would like to generate a profit of $1,140. Determine how many rosettes it must sell to achieve this target profit 2. If Dana's sells 2,160 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 2,160 rosettes. 4a. Using the degree of operating leverage calculate the change in Dana's profit If unit sales drop to 1836 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. 3. Calculate vanas aegree or operating leverage if it sells 2,160 rosettes 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales 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 Req 4A Req 4B Suppose Dana's would like to generate a profit of $1,140. Determine how many rosettes it must se profit. (Round your intermediate calculations to 2 decimal places and round your final answer up to Target Units Prev 5 of 6 Next > search O 44 $ % search o C 2/5 11% mework Saved 3. Calculate vana s degree or operating leverage if it sells 2,160 rosettes 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop 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 Req3 Req 4A Req 4B Calculate Dana's degree of operating leverage if it sells 2,160 rosettes. (Round your intermediate calcula places and final answer to 4 decimal places.) Degree of Operating Loverage earch o 0 $ 7/% & ube Maps Course Home Course Home To Do Assignments. VitalSource Booksh. Mind Tag mework Saved 3. Calculate uanas degree of operating leverage it it sells 2.160 rosettes. 4a. Using the degree of operating leverage calculate the change in Dana's profit if unit sales drop to 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 Req3 Req 4A Req 48 Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 1,836 uni intermediate calculations to 4 decimal places and final answer to 2 decimal places. (.e. 1234 should be er Effect on Profit ( Req3 Req 48 > arch mework Saved Reg 1 Reg 2 Reg 3 Req 4A Req 4B Prepare a new contribution margin income statement to verify change in dana's profit. number.) Contribution Margin Income Statement For 1,836 Rosettes Contribution Margin Income from Operations RenA BE Fearch o
