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 $ 2.50 6.00 7000.00 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 1,836 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 Suppose Dana's would like to generate a profit of $1,140. Determine how many roset nrnfit. (Round vour intermediate calculations to decimal nlaces and round your final 15,570 W 18 6 Saved Help Save & Exit Submit Check my work Variable cost per rosette Sales price per rosette Total fixed costs per month $ 2.50 6.00 7000.00 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 1,836 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 Req 2 Req3 Req 4A Req 4B Suppose Dana's would like to generate a profit of $1,140. Determine how many roset profit. (Round your intermediate calculations to 2 decimal places and round your final Target Units Req2 > Check my work Variable cost per rosette Sales price per rosette Total fixed costs per month $ 2.50 6.00 7000.00 Required: 1. Suppose Dana's would like to generate a profit of $1,140. Determine how man 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 prof if unit sales drop to 1,836 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 Req 2 Reg 3 Req 4A Req 48 If Dana's sells 2,160 rosettes, compute its margin of safety in units, in sales dollars, your intermediate calculations to 2 decimal places and final answer to the nearest w percentage to two decimal places (1.e. 0.1234 should be entered as 12.34%.)) Rosettes Margin of Safety (Units) Margin of Safety in Dollars Percentage of Sales 9 Rog1 Roq3 > 15,570 67 TAI 60 Savad Help Save & Exit Subm Check my work Variable cost per rosette Sales price per rosette Total fixed costs per month $ 2.50 6.00 7000.00 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, 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 1,836 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 Req 4A Req 4B Calculate Dana's degree of operating leverage if it sells 2,160 rosettes. (Round your ili places and final answer to 4 decimal places.) Degree of Operating Leverage 15,570 Check my work Variable cost per rosette Sales price per rosette Total fixed costs per month $ 2.50 6.00 7000.00 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 profil if unit sales drop to 1,836 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 Req 2 Reg 3 Reg 4A Reg 4B Using the degree of operating leverage, calculate the change in Dana's profit if unit s intermediate calculations to 4 decimal places and final answer to 2 decimal places. ( Effect on Profit % EURUU UIVULNwy mury VI MILEY NEW un bllars, and as a percentage of sales. Calculate Dana's degree of operating leverage if it sells 2,160 rosettes. a. Using the degree of operating leverage, calculate the change in Dana's unit sales drop to 1,836 units. b. Prepare a new contribution margin income statement to verify change i lana'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 number.) Contribution Margin Income Statement For 1,836 Rosettes Contribution Margin Income from Operations Red 4.4 Prey 5 G Next
