cosmic sells four dozen donuts for every dozen custard filled donuts. a dozen sells for 4.00$
The contribution margin income statement of Cosmic Cosmic sells four dozen plain donuts for every dozen Donuts for August 2024 follows: custard-filled donuts. A dozen plain donuts sells for (Click the icon to view the contribution margin income $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $8.00, with total statement.) 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.) HER Plain Filled Total 4 8 Sales price per unit Variable cost per unit Contribution margin per unit Sales mix in units 1.60 3.20 2.40 4.8 X 6 Contribution margin Weighted-average contribution margin per unit Requirement 2. Determine Cosmic'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 breakeven 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 all input fields Enter a "O* for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighter-avg. CM = weighted average contribution margin.) = Required sales in units The contribution margin income statement of Cosmic Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Cosmic sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $8.00, with total variable cost of $3.20 per dozen. Read the requirements. Determine Cosmic'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 level of sales. Show only two categories of costs: variable and fixed. (Enter a "O" for any zero balances.) Cosmic Donuts Contribution Margin Income Statement Total Net Sales Revenue Plain Filled Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Cosmic's margin of safety in dollars for August 2024. (The contribution margin income statement provided should be used to determine any expected results.) Margin of safety in dollars HUBU Requirement 4. Compute the degree of operating leverage for Cosmic 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 Cosmic Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX.) Degree of operating leverage Estimate the new operating income if total sales increase by 40%. (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 40% increase in total sales. (The sales mix remains unchanged.) Cosmic Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Estimate the new operating income if total sales increase by 40%. (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 40% increase in total sales. (The sales mix remains unchanged.) Cosmic Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income X Data Table Cosmic Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 129,000 Variable Costs: Cost of Goods Sold $ 32,400 Selling Costs 17,100 Administrative Costs 2,100 51,600 Contribution Margin Fixed Costs: 77,400 te Selling Costs Administrative Costs 25,920 8,640 34,560 Operating Income $ 42,840 Print Done
