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HW Ch 6 instructions I help Question 2 (of 5) save & Exit | Submit | 2.00 points E6-13 Calculating Break-Even Point, Degree of Operating
HW Ch 6 instructions I help Question 2 (of 5) save & Exit | Submit | 2.00 points E6-13 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 aulomation follows: Ater Before Automat on Automation Sales revenue Less: Varable cost Less: Foed cost Net operating income 5198,000 198,000 39.000 159,000 62,000 98,000 3,000 Contribution margin Required: 1. 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 2. 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 References cBook & Resources Worksheet Difficulty: 2 Medium Learning Objective: 06-05 Calculate the degree of operating leverage and use it to predict the effect a change in sales will have on profit
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