Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $190, eee 93. eee $ 97,000 18,000 $ 79,000 After Automation $190,000 51, eee $139, eee 60,000 $ 79,000 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 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 After domation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started