if this question has too many subparts could you please skip the first one, thank you
The contribution margin income statement of Krazy Kustard Krazy Kustard sells five dozen plain donuts for every dozen Donuts for August 2018 follows: custard-filled donuts. A dozen plain donuts sells for $4.00, with (Click the icon to view the contribution margin income 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 statement) dozen Read the requirements Requirement 1. Calculate the weighted average contribution margin (Round all currency amounts to the nearest cent.) HINT: Note that you'll need to calculate contribution margin as normal for each variety. Then you'll need to do the "two-step" approach of arriving at weighted average contribution margin demonstrated by the book--this amounts to entering the numerator from the one-step approach I demonstrated in the lecture to fill in amounts in the third-to-last row to arrive at amounts in the second-to-last column, then dividing by the denominator to arrive at the weighted average contribution margin Plain Filled Total Contribution margin per unit Fixed cost per unit Sales mix in units Sales price per unit Variable cost per unit Choo Sut fields and then continue to the next question 1. Calculate the weighted average contribution margin. 2. Determine Krazy Kustard'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 Kustard's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Krazy Kustard 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.) X Data Table Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 126,000 Variable Costs: Cost of Goods Sold $ 32,400 Selling Costs 17,400 600 50,400 Administrative Costs Contribution Margin 75,600 Fixed Costs: Selling Costs 36,450 12,150 Administrative Costs 48,600 CA Operating Income 27,000 x Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Krazy Kustard'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 "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted average contribution margin.) HINT: Recall that finding the weighted average CM is the real difference for sales mix / multiple product type examples. This calculation is the same as with one product Choose from any list or enter any number in the input fields and then continue to the next question product type examples. This calculation is the same as with one product. = Required sales in units Determine Krazy Kustard'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.) NOTE Begin with sales revenue, and remember the subtotal that you'll need to find to generate this type of income statement remember the subtotal that you'll need to find to generate this type of income state Krazy Kustard Donuts Contribution Margin Income Statement Plain Filled Net Sales Revenue Total Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Krazy Kustard'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
