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Peggy's Ribbon World makes award rosettes. Following is information about the company:Variable cost per rosette-----------$1.11Sales price per rosette--------------2.90Total fixed costs per month--------879.001: Suppose Peggy's would like to generate a profit of $750. Determine how many rosettes it must sell to achieve this target profit. (Round your intermediate calculations to 2 decimal places and final answer to next whole number.)Target units:__________2: If Peggy's sells 1,070 rosettes, compute its margin of safety in units, margin of safety in dollars, and as a percentage of sales. (Round your intermediate calculations, break-even sales dollars and percentage answers to 2 decimal places. Round your margin of safety answer to the next whole number.)Margin of safety (units):__________rosettesMargin of safety in dollars:$__________Percentage of sales:__________%3: Calculate Peggy's degree of operating leverage if it sells 1,070 rosettes. (Round your intermediate calculations to 2 decimal places and final answer to 4 decimal places.)Degree of operating leverage:__________4: Using the degree of operating leverage, calculate the change in Peggy's profit if it raises the sales price of each rosette by $.40. (Assume costs do not change.) (Round your intermediate calculations and final answer to 4 decimal places. Omit the "%" sign in your response.)Effect on profit:__________%
Using this information, prepare a budget for May stating the total amount for the May budget. Assume the budget will increase to 23,000 jars of sauce reflecting anticipated sales increase related to a new marketing campaign.
Compute break even point in units of product (2) break even point in sales (3) the number of units product that must be produced and sold to achieve a profit of Rs.10000 and (4) the sales revenue required to achieve a profit of Rs.10000.
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