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Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Lobster Trap Company is considering automating its
Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows:
Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the propo automation follows: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income Before Automation $ 192,000 97,000 $ 95,000 12,000 $ 83,000 After Automation $ 192,000 47,000 $ 145,000 56,000 $ 89,000 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 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 Required 1 Required 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 AutomationStep by Step Solution
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