Question
Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Before Automation After Automation Sales revenue $
Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows:
| Before Automation | After Automation | |||||
| Sales revenue | $ | 193,000 | $ | 193,000 | ||
| Less: Variable cost | 101,000 | 45,000 | ||||
| Contribution margin | $ | 92,000 | $ | 148,000 | ||
| Less: Fixed cost | 13,000 | 60,000 | ||||
| Net operating income | $ | 79,000 | $ | 88,000 | ||
Required: 1. Calculate Lobster Traps break-even sales dollars before and after automation. (Round your contribution margin ratio to 4 decimal places and final answers to 2 decimal places.)
|
2. Compute Lobster Traps degree of operating leverage before and after automation. (Round your answers to 4 decimal places.)
|
PLEASE EXPLAIN
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Dynamic Data Sharing For Public Data Integrity Auditing In The Cloud
Authors: B Gunalan
1st Edition
050911878X, 978-0509118789
