P-M:4-65B Calculating breakeven point for two products, margin of safety, and operating leverage The contribution margin income statement of Delectable Donuts for May 2024 follows:

Account Amount Total

Net Sales Revenue blank $ 125,000

Category, Variable Costs blank Blank

Cost of Goods Sold

$ 32,100 Blank

Selling Costs

17,400 Blank

Administrative Costs

500, single underlined 50,000, single underlined

Contribution Margin blank 75,000

Category, Fixed Costs blank Blank

Selling Costs

37,800 Blank

Administrative Costs

12,600, single underlined 50,400, single underlined

Operating Income blank 24,600, double underlined

Delectable sells five dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with a variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $8.00, with a variable cost of $3.20 per dozen. Requirements

Calculate the weighted-average contribution margin.

Determine Delectables 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.

Compute Delectables margin of safety in dollars for May 2024.

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.)

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.)