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Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: After Automation $198,000 38,000 Before Automation Sales
Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: After Automation $198,000 38,000 Before Automation Sales revenue $198,000 Less: Variable 78,000 cost Contribution margin $120,000 Less: Fixed cost 15,000 Net $105,000 operating income $160,000 58,000 $102,000 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 Required 1 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 Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: After Automation $198,000 38,000 Before Automation Sales revenue $198,000 Less: Variable cost 78,000 Contribution $120,000 margin Less: Fixed 15,000 cost Net $105,000 operating income $160,000 58,000 $102,000 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 Required 1 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
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