Assume Annie's Homemade sells one flavor of ice cream in 6-ounce servings and 8-ounce servings. A 6-ounce serving sells for $5 and an 8-ounce serving sells for $6. The variable expense is $1.40 per 6-ounce serving and $1.80 per 8-ounce serving. The monthly fixed expenses are $11,000. The companys most recent monthly contribution format income statement is shown below: 6-Ounce 8-Ounce Total Sales $ 24,000 $ 12,000 $ 36,000 Variable expenses 6,720 3,600 10,320 Contribution margin $ 17,280 $ 8,400 25,680 Fixed expenses 11,000 Net operating income $ 14,680

Required: In the most recent month: What is the companys overall contribution margin (CM) ratio?

What is the companys break-even point in dollar sales? In the most recent month: How many 6-ounce servings did the company sell?

How many 8-ounce servings did the company sell? How many total servings did the company sell? Assume next month the total number of servings remains unchanged; however, 50% of the servings sold are 6-ounce portions and the remaining 50% are 8-ounce portions. Prepare a new contribution format income statement based on the revised sales mix.

What is the revised break-even point in dollar sales? Which of the following statements is true regarding the revised sales mix? Assuming the companys production capacity exceeds its customer demand, which of the following is true? For the 6-ounce serving and the 8-ounce serving, what is the contribution margin per ounce? Assuming the companys customer demand far exceeds its production capacity, which of the following is true? Which of the following statements is true?