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co Requirements Datatable 1 12 - 2 . COND Cone 3 Dan Krazy Cream sells five dozen pla dozen. A dozen custard-filled dor Read the
co Requirements Datatable 1 12 - 2 . COND Cone 3 Dan Krazy Cream sells five dozen pla dozen. A dozen custard-filled dor Read the requirements. Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Krazy Cream'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 Krazy Cream's margin of safety in dollars for August 2024 4. Compute the degree of operating leverage for Krazy Cream 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 dollar. 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) Print Done - X Data table Krazy Cream Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 128,000 Variable Costs: Cost of Goods Sold $ 32,300 Selling Costs 17,200 Administrative Costs 1,700 51,200 Contribution Margin 76,800 Fixed Costs: Selling Costs 37.800 Administrative Costs 12,600 50.400 26,400 Operating Income Print Done Krazy Cream sells five dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $160 per dozen A dozen custard-filled donuts sells for $8.00, with total variable cost of $3 20 per dozen Read the requirements Requirement 1. Calculate the weighted average contribution margin (Round all currency amounts to the nearest cent.) 6 Plain Filled Total Sales price per unit $ 4.00 $ 8.00 Variable cost per unit 160 320 Contribution margin per unit 2.40 4.80 5 Sales mix in units $ Contribution margin 12.00 $ 4.80 $ 16 80 Weighted-average contribution margin per unit $ 2.80 Requirement 2. Determine Krazy Cream's monthly breakeven point in dozens of plain donuts and custard killed donuts Prove your an We'll begin with the breakeven point Start by selecting the formula and entering the amounts to compute the breakeven point in units for Weighted-avg CM = weighted average contribution margin) Required sales o unite )
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