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 $ 1.50 3.00 3000.00 Required: 1. Suppose Dana's would like to generate a profit of $840. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 3,200 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 3,200 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 units. 4b. Prepare 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 $840. 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 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 $ 1.50 3.00 3000.00 Required: 1. Suppose Dana's would like to generate a profit of $840. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 3,200 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 3,200 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 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. Req 1 Reg 2 Req3 Req 4A Req 4B If Dana's sells 3,200 rosettes, ute its margin of in sales 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 (i.e. 0.1234 should be entered as 12.34%.)) Rosettes Margin of Safety (Units) Margin of Safety in Dollars Percentage of Sales % 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 $ 1.50 3.00 3000.00 Required: 1. Suppose Dana's would like to generate a profit of $840. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 3,200 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 3,200 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 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. Req 1 Reg 2 Req3 Req 4A Req 4B Calculate Dana's degree of operating leverage if it sells 3,200 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.) Degree of Operating Leverage ( Req 2 Req 4A > 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 S 1.50 3.00 3000.00 Required: 1. Suppose Dana's would like to generate a profit of $840. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 3,200 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 3,200 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 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 4A Req 4B Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 units. (Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.)) Effect on Profit Required: 1. Suppose Dana's would like to generate a profit of $840. Determine how many rosettes it must sell to achieve this target profit. 2. If Dana's sells 3,200 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 3,200 rosettes. 4a. Using the degree of operating leverage, calculate the change in Dana's profit if unit sales drop to 2,880 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. Req 1 Reg 2 Reg 3 Req 4A Req 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 2,880 Rosettes Contribution Margin Income from Operations
