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Krazy Kustard Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 129,000 Variable Costs: Cost of Goods Sold $ 32,500 Selling Costs 17,300 1,800 Administrative Costs 51,600 Contribution Margin 77,400 Fixed Costs: Selling Costs 24,840 8,280 Administrative Costs 33,120 ve yo $ 44,280 and fix Operating Income ht in un Jounts t Print h units Done 2018 follows: The contribution margin income statement of Krazy Kustard Donuts for August 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 per dozen. A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.80 per dozen Read the requirements GREE Requirement 1. Calculate the weighted-average contribution margin (Round all currency amounts to the nearest cent.) Plain Filled Total M Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Krazy Kustard's monthly breakeven point in dozens of plain donuts and custard-fled 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 "O" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted average contribution margin.) = Required sales in units Determine Krazy Kustard's monthly breakeven point in dozens of plain donuts and custard-filed donuts. The breakeven point is dozen plain donuts and dozen custard-filled dots 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) Krazy Kustard Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue 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 Requirement 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.) Begin by computing the degree of operating leverage for Krazy Kustard Donuts. (Round the degree of operating leverage to four decimal places, XXXXX) Degree of operating leverago Estimate the new operating income if total sales increase by 10% (Round interim calculations to four decimal places and your final answer to the nearest dollar Assume the sales mix remains unchanged.) The estimated operating income will be Requirement 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.) Krazy Kustard Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income
