Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the...
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Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Before Automation After Automation Sales revenue $ $ Less: Variable cost Contribution margin $ $ Less: Fixed cost Net operating income $ $ Required: Calculate Lobster Traps breakeven sales dollars before and after automation. Compute Lobster Traps degree of operating leverage before and after automation.
Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows:
Before Automation After
Automation
Sales revenue $ $
Less: Variable cost
Contribution margin $ $
Less: Fixed cost
Net operating income $ $
Required:
Calculate Lobster Traps breakeven sales dollars before and after automation.
Compute Lobster Traps degree of operating leverage before and after automation.
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