Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASEE I NEED HELP Data table Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Creamy's monthly breakeven point in dozens of plain donuts and

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedPLEASEE I NEED HELP

Data table Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Creamy'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 Creamy's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Creamy Donuts. Estimate the new operating income if total sales increase by 40%. (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 40% increase in total sales. (The sales mix remains unchanged.) The contribution margin income statement of Creamy Donuts for August 2024 follows: Creamy sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.20, (Click the icon to view the contribution margin income statement.) with total variable cost of $1.68 per dozen. A dozen custard-filled donuts sells for $6.20, with total variable cost of $2.48 per dozen. Read the requirements. Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) ( +++==Requiredsalesinunits= Determine Creamy'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. Creamy Donuts Contribution Margin Income Statement Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income =Marginofsafetyindollars= dollar. Assume the sales mix remains unchanged.) Begin by computing the degree of operating leverage for Creamy Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX ) 1== The estimated operating income will be

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Accounting Concepts Principles And Procedures Volume 1

Authors: Gregory Mostyn, Worthy And James

2nd Edition

0991423100, 978-0991423101

More Books

Students also viewed these Accounting questions

Question

What should Sheila have done to avoid interviews like this one?

Answered: 1 week ago