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Danas Ribbon World makes award rosettes. Following is information about the company: ...

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Accounting

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Danas Ribbon World makes award rosettes. Following is information about the company:
Variable cost per rosette $ 2.00
Sales price per rosette 6.00
Total fixed costs per month 6000.00
Required:
Suppose Danas would like to generate a profit of $1,120. Determine how many rosettes it must sell to achieve this target profit.
If Danas sells 2,140 rosettes, compute its margin of safety in units, in sales dollars, and as a percentage of sales.
Calculate Danas degree of operating leverage if it sells 2,140 rosettes.
Using the degree of operating leverage, calculate the percentage change in Danas profit if unit sales drop to 1,819 units.
Prepare a new contribution margin income statement to verify change in Dana's profit.
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