Data Table Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue 126,000 Variable Costs: Cost of Goods Sold 32,600 Selling Costs 17,300 500 Administrative Costs 50,400 75,600 Contribution Margin Fixed Costs: Selling Costs 25,920 8,640 Administrative Costs 34,560 $ 41,040 Operating Income Print Done Requirements t 1. Calculate the weighted-average contribution margin. 2. Determine Unique'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 Unique's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Unique Donuts. Estimate the new operating income if total sales increase by 10%. (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 10% increase in total sales. (The sales mix remains unchanged.) Print Done The contribution margin income statement of Unique Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Unique 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 11111 I currency amounts to the nearest cent.) Requirement 1. Calculate the weighted average contribution margin. (Round Plain Filled Total Sales price per unit 4 8 1.6 3.2 Variable cost per unit Contribution margin per unit Sales mix in units 2.4 4.8 Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Unique'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 compute the breakeven point in units for the "package" of productstotal 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: Weighted-avg. CM = weighted average contribution margin.) = Required sales in units Determine Unique'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 Determine Unique'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 "0" for any zero balances.) Unique Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Unique'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 = Requirement 4. Compute the degree of operating leverage for Unique Donuts. Estimate the new operating income if total sales increase by 10%. (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 Unique 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 10%. (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 10% increase in total sales. (The sales mix remains unchanged.) Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income
