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Homework: Chapter 20 Homework Assignment Save Score: 0.32 of 1 pt 1 of 1 (1 complete) HW Score: 32.08%, 0.32 of 1 pt P20-41A (similar

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Homework: Chapter 20 Homework Assignment Save Score: 0.32 of 1 pt 1 of 1 (1 complete) HW Score: 32.08%, 0.32 of 1 pt P20-41A (similar to) Question Help The contribution margin income statement of Sweet Pea Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Sweet Pea 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 Requirement 1. Calculate the weighted-average contribution margin (Round all currency amounts to the nearest cent) Total Sales price per unit $ Plain 4.00 $ 1.60 Filled 8.00 3.20 4.80 Variable cost per unit Contribution margin per unit 2.40 x Sales mix in units 4 9.60 4.80 $ 14.40 Contribution margin $ 2.88 Weighted average contribution margin per unit Requirement 2. Determine Sweet Pea'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 answer boxes. Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM-weighted average contribution margin.) = Required sales in units 0 Data Table Sweet Pea Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 127,000 Variable Costs: Cost of Goods Sold $ 32,000 Selling Costs 17,600 1,200 Administrative Costs 50,800 Contribution Margin 76,200 Fixed Costs: Selling Costs 25,920 Administrative Costs 8,640 34,560 $ 41,640 Operating Income Print Done 0 Requirements 1. Calculate the weighted average contribution margin. 2. Determine Sweet Pea'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 Sweet Pea's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Sweet Pea 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

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