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2 need help understanding The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: Swoot Pea sells two dozen plan donuts for
2 need help understanding
The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: Swoot Pea sells two dozen plan donuts for every dozen custard tited donuts A (Click the icon to view the contribution margin income statement) dozen plain donuts sells for 53.40 , with lotal variable cost of 51.36 per dozen. A dozen custard-6ilted donuts selt for $7.00, weth total variable cost of $2.80 por doten Read the reguivements Data table Sweet Pea Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $126,000 Variable Costs: Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Sweet Pea's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show only two categories of costs: variable and fixed. 3. Compute Sweet Pea's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Sweet Pea Donuts. Estimate the new operating income if total sales increase by 40%. (Round the degree of operating leverage to four decimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.) 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 40% increase in total sales. (The sales mix remains unchanged.) Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) Requirement 2. Determine Sweet Pea's monthly breakeven point in dozens of plain donuts and custard filled donuts. Prove your answer by preparing a summary contibution margin income statement at the breakeven level of sales. Show only two calegories of costs: variable and fixed. We't begin with the breakeven point. Start by selecting the formula and ontering the amounts to compute the breakeven point in unils for the "package" of products- total dozens of donuts to be sold. (Complete all input fields. Enler a " 0 " for any zero balances. Enter currency amounts to the noarest cent Abbreviation usted Weighted-avg. CM = weighted. average contribution margin) Delermine Sweot Pea's monthly breakeven point in dozons of plain donuts and custard-filled donuts. The hreakeven point is doten plain donuts and dozen custard filled donut. Sweet Pea Donuts Contribution Margin Income Statement Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income tequirement 3. Compute Sweet Pea's margin of safety in dollars for August 2024. (The contribution margin income statement provided should be used to defermine anty apected results.) Requirement 4. Compute the degree of operating leverage for Sweet Pea Donuts. Estimate the new operating income if total sales increase by 40%. (Round the degree of operating leverage to four decimal places and the final answer to the nearest dollar Assume the sales mix remains unchanged) Begin by computing the degree of operating leverage for Sweet Pea Donuts. (Round the degree of operating lovetage to four decimal places, XXXXX.) =Degreeofoperatinglewerage= Estimate the new operating income it total sales increase by 40%. (Round interim calculations to four decimal places and your final answes to the neafest dollar. Absume the 5 A mix temaing unchangad.) The estimated operating income will bo equirement 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 40% increase in total sales. (The rales mix remains unchanged Sweet Pea Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Step by Step Solution
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