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I need assistance with requirements 3,4 and 5, please. The contribution margin income statement of Unique Donuts for August 2018 follows: E: (Click the icon
I need assistance with requirements 3,4 and 5, please.
The contribution margin income statement of Unique Donuts for August 2018 follows: E: (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 $7.00, with total variable cost of $2.80 per dozen. Read the requirements. Data Table Requirement 1. Calculate the weighted average contribution margir Plain x Requirements Sales price per unit $ 4.00 $ Variable cost per unit 1.60 Contribution margin per unit 2.40 4 Sales mix in units $ 9.60 Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 130,000 Variable Costs: Cost of Goods Sold $ 32,700 Selling Costs 17,400 Administrative Costs 1,900 52,000 Contribution margin Weighted average contribution margin per unit 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 2018. 4. Compute the degree of operating leverage for Unique Donuts. Estimate the new operating income if total sales increase by 30%. (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 30% increase in total sales. (The sales mix remains unchanged.) Requirement 2. Determine Unique's monthly breakeven point in do costs: variable and fixed. paring a summary s of Contribution Margin 78,000 "package" of produ We'll begin with the breakeven point. Start by selecting the formula balances. Enter currency amounts to the nearest cent. Abbreviation Fixed Costs: Fixed costs Target profit Selling Costs 24,840 8,280 ($ 33,120 0 Administrative Costs 33,120 $ 44,880 Print Determine Unique's monthly breakeven point in dozens of plain don Operating Income Done Choose from any list or enter any number in the input fields and Print Dono Requirement 1. Calculate the weighted average contribution margin. (Round all currency amounts to the nearest cent.) Plain Filled Total 4.00 $ 7.00 Sales price per unit Variable cost per unit 1.60 2.80 Contribution margin per unit 2.40 4.20 4 Sales mix in units 1 X 5 $ 9.60 $ 4.20 $ 13.80 Contribution margin $ 2.76 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 to compute the breakeven point in units for the "package" of productstotal 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.) Fixed costs Target profit )/ Weighted-avg. CM per unit )/ $ 2.76 Required sales in units 12,000 33,120 0 Determine Unique's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Determine Unique's monthly breakeven point in dozens of plain donuts and custard-filled donuts. The breakeven point is 9,600 dozen plain donuts and 2,400 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.) Total Unique Donuts Contribution Margin Income Statement Plain Filled Net Sales Revenue $ 38,400 $ 16,800 $ Variable Costs 15,360 6,720 $ 23,040 $ 10,080 Contribution Margin 55,200 22,080 33,120 33,120 Fixed Costs $ 0 Operating Income Requirement 3. Compute Unique's margin of safety in dollars for August 2018. (The contribution margin income statement provided should be used to determine any expected results.) = Margin of safety in dollars Choose from any list or enter any number in the input fields and then click CheckStep by Step Solution
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