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8. The contribution margin income statement of Creamy Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement Creamy sells
8. The contribution margin income statement of Creamy Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement Creamy sells four dozen plain donuts for every dozen custard-filled donuts Adozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.80 per dozen. Read the requirements Requirement 1. Calculate the weighted average contribution margin (Round all currency amounts to the nearest cent.) Plain Filled Total (1) (2) X Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Creamy'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 We'll begin with the broakoven point. Start by selecting the formula and entering the amounts to compute the breakeven point in units for the package of products-Total dozens of donuts to be sold. (Complete answer boxes. Enter a "O" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) (5) (7) Required sales in units Determine Creary's monthly breakeven point in dozens of plain donuts and custard-filled donuts. The breakeven point is dozen plain donuts and dozen custard filled donuts Prove your answer by preparing a summary contribution margin income statement at the breakeven kwel of saks. Show only two categories of costs: variable and fixed. (Enter a 'o' for any zero balances.) Creamy Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Activate Windows Go to Settings to activate Windows. Print Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales Shaw only two categories of costs variable and fixed (Enter a "o for any zero balances) Creamy Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operaling Income Requirement 3. Compute Creamy's margin of safety in dollars for August 2018 (The contribution margin income statement provided should be used to determine any expected results) (6) (9) = Margin of safely in dollars Requirement 4. Compute the degree of operating leverage for Creamy Donuts Estimate the new operating income il total sales increase by 20% (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 Creamy Donuts (Round the degree of operating leverage to four decimal places X XXXX) (10) (11) Degree of operating leverage Estimate the new operating income if total sales increase by 20% (Round interim calculations to four decimal places and your final answer to the nearest dollar Assume the sales mix remains unchanged) The estimated operating income will be $ Requirement 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 20% increase in total sales. The sales mix remains unchanged.) Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Activate Windows Go to Settings to activate Windows Print Requirement 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 20% increase in total sales. The sales mix remains unchanged.) Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income 1: Data Table Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 128,000 Variable Costs Cost of Goods Sold S 32 200 Selling Costs 17.100 Administrative Costs 1,900 51,200 Contribution Margin 76 80D Fixed Costs Selling Costs 31,050 Administrative Costs 10.350 11,400 S 35,400 Operating income 2: Requirements 1. Calculate the weighted average contribution margin Activate Windows 2. Determine Creamy'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 ents: Variable and food 3. Compute Creamy's marain of safety in dollars for August 2013 76 800 Print Contribution Margin Fixed Costs Selling Costs 31,050 10,350 Administrative Costs 41,400 $ 35 400 Operating Income 2: Requirements 1. Calculate the weighted average contribution margin 2. Determine Creamy'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 Creamy's margin of safety in dollars for August 2018 4. Compute the degree of operating leverage for Creamy Donuts. Estimate the new operating income if total sales increase by 20%. (Round the degree of operating leverage to four decimal places and the final answer to the nearest dolar. Assume the sales mix remains unchanged.) 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 20% increase in total sales. (The sales mix remains unchanged.) (1) (3) Sales price per unit Contribution margin per unit Variable cost per unit Fixed cost per unit Sales mix in units (2) O Sales price per unit Contribution margin per unit Variable cost per unit O Fixed cost per unit Sales mix in units Sales price per unit Contribution margin per unit Variable cost per unit Fixed cost per unit Sales mix in units (6) (7) O Sales price per unit Contribution margin per unit Variable cost per unit Fixed cost per unit Sales mix in units (5) O O Variable costs Fixed costs Weighted-avg. CM per unit O Sales price Weighted-avg. CM ratio Target profit O Variable costs Fixed costs Weighted-avg. CM per unit Sales price Weighted-avg. CM ratio Target profit O Variable costs Fixed costs Weighted-avg. CM per unit Sales price Weighted-avg. CM ratio Target profit (8) O Expected sales in dollars Breakeven sales in dollars Expected sales in units O Breakeven sales in units Operating income O Contribution margin (9) O O Expected sales in dollars Breakeven sales in dollars Expected sales in units O Breakeven sales in units Operating income Contribution margin (10) O Expected sales in dollars Sales revenue O Breakeven sales in dollars Expected sales in units O Variable costs O Breakeven sales in units Fixed costs Contribution margin Operating income (11) O Breakeven sales in dollars O Breakeven sales in units Contribution margin O Expected sales in dollars Sales revenue Expected sales in units O Variable costs Fixed costs O Operating income Activate Windows Go to Settings to activate Windows
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