P20-41A (similar to) Question H The contribution margin income statement of Krazy Kustard Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Krazy Kustard 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 pe 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.) Plain Filled Total Requirements Data Table - X Contribution margin Weighted average contribution margin per unit Krazy Kustard Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 126,000 Variable Costs: Cost of Goods Sold $ 32,500 Selling Costs 17,600 Administrative Costs 300 50,400 Contribution Margin 75,600 Fixed Costs: Selling Costs 32,400 Administrative Costs 10,800 43,200 $ 32,400 Operating Income 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 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.) Print Done Print Done