please answer requirement 5
The contribution margin income statement of Delectable Donuts for May 2024 follows: Click the icon to view the contribution margin income statement Delectable sels five dozen plain donuts for every dozen custard-filed donuts. A dozen plain donutssels for $4.00, with intal variable cost of $1 60 per dozen A dozen custard-filled donuts sells for 58.00, with total variable cost of 53.20 per dozen Read the requirements 1 60 Requirement 1. Calculate the weighted average contribution margin (Round all currency amounts to the nearest cant) Plain Filled Total Sales price per unit 5 4.00 $ 8.00 Variable cost per unit 3.20 Contribution margin per unit 2.40 4.80 * Sales mix in units 6 5 12.00 5 4.80S 16.80 Contribution margin S 2.80 Weighted average contributiun margini per il Requirement 2. Determine Delectable'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 breakevent level of sales Show only two categories of costs variable and fixed. Well 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 at for any zero balances. Enter currency amounts to the nearest cant Abbreviation user Weighted-avg CM = weighted- average contribution margin) Fixed costs Target prolit ) - Weighted avg. CM per unit = Required sales in units (5 50 400 $ + S 2.00 18 ODO Determine Delectable's monthly breakeven point in dozens of plain donuts and custard-filed dursus The breakeven point is 15.000 dozen plain donuts and 3.000 dozen custard-lilled donuts Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales Show only two categories of casts: variable and fixed Enter a "O for any zero balances.) Delectable Donuts Contribution Margin income Statement Plain Filled Total Net Sales Revenue S S 60,000 $ 24,000 $ 84,000 Variable Costs 24,000 9,600 33.600 S 14400 36,000 5 Contribution Margin 50,400 Fixed Costs 50,400 Operating income Requirement 3. Compute Delectable's margin of safety in dollars for May 2024. (The contribution margin Income statement provided should be used to determine any expected results.) Expected sales in dollars Breakeven sales in dollars = Margin of safety in dollars 5 5 125 000 84.000 5 41.000 Requirement 4. Compute the degree of operating leverage for Delectable Donuts. Estimate the new operating income if total sales increase by 20% (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 Delectable Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX) Contribution margin Operating income = Degree of operating leverage s 75.000 $ 24600 3.0488 Estimate the new operating income i total sales increase by 20% (Round interim calculations to four decimal places and your final answer to the nearest dollal. Assume the sales . mix remains unchanged) The estimated operating Income will be $ 99,600 Requirement 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 20% increase in total sales. The sales mix remains unchanged. & % Delectable Donuts X Contribution Margin laucome Statement Data table Month Ended May 31, 2024 Net Sales Revenue Delectable Donuts Variable Costs Contribution Margit Contribution Margin Income Statement Month Enrad May 31, 2024 Fixed Costs Net Sales Revenue 3 125.000 Operating Income Variable Costs Cost of Goods Sold s 32 100 Saling Costs 17.400 Administrative Costs 500 50.000 Contribution Mergin 75.000 Fixed Costs Saling Costs 37 800 Administrative Coats 12.500 50 400 Help me solve this Video Get more help Check answer 5 24 600 Operating income
