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E6-14 (Algo) Calculating Break-Even Point, Degree of Operating Leverage [LO 6-1, 6-5] Lobster Trap Company is considering automating its manufacturing facility. Company information before and
E6-14 (Algo) Calculating Break-Even Point, Degree of Operating Leverage [LO 6-1, 6-5] Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income Before Automation $191, cea 188,888 $ 91,808 19,800 $ 72, eee After Automation $191, eee 4e, de $151,00 63, Bea $ 88,888 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Lobster Trap's break-even sales dollars before and after automation. (Round your contribution margin ratio to 4 decimal places and final answers to 2 decimal places.) Break-Even Sales Dollars Before Automation Break-Even Sales Dollars After Automation Compute Lobster Trap's degree of operating leverage before and after automation. (Round your answers to 4 decimal places.) DOL Before Automation DOL After Automation 1
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