Question
Parts 1 and 2 are done correctly, and provide the information for parts 3 and 4 which I need help on Question 3: Calculate Danas
Parts 1 and 2 are done correctly, and provide the information for parts 3 and 4 which I need help on Question 3: "Calculate Danas degree of operating leverage if it sells 2,100 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.)"
Question 4: "Using the degree of operating leverage, calculate the change in Danas profit if unit sales drop to 1,848 units. Confirm this by preparing a new contribution margin income statement. (Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))"
Dana's Ribbon World makes award rosettes. Following is information about the company Variable cost per rosette Sales prica per rosette Total fixed casts per month S 2.60 5.00 4800 00 Required: 1. Suppose Dana's would like to generate a proft of $1,080. Determine how many rosettes it must sell to achieve this target profit (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) 2.450 2. If Danas sells 2,100 rosettes, compute its margin of satety in units, in sales dollars, and as a percentage of sales. (Round your Margin of safety percentage to two decimal places (Le. -1234 should be entered as 12.34%) Margin of Safaty (Units) Margin of Safety in Dollars500 Percentage of Salas 100 Rosettes 4761% 3. Calculate Dana's degree or operating leverage " n sc is 2100 rosettes [Round your intermediate eaiculations to 2 decimal places and final answer to 4 decimal places.) Dana's oc 4. Usina the dogree or operating leverage, calculate the change in Dana's pront if unit sales drop 10 1,848 unlts. Confirm this by preparng a new contnbution margin Income statement. (Le, .1234 should be entered as 12.34%.)) (Round your Intermediat proparing a calculations to 4 decimal places and final answer to 2 decimal places 34%. Effact on For 1848 Rosettes ariable Costs Contribution Margin Ficed Coats Income from CperationsStep by Step Solution
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