Question 4: The contribution margin income statement of Krazy Cream Donuts for August 2014 follows: Krazy Cream Donuts Contribution Margin Income Statement Month Ended August 31, 2014 Sales Revenue $ 126,000 Variable Costs Cost of Goods Sold $ 32,200 Selling Costs 17,200 Administrative Costs 7300 56,700 Contribution Margin 69,300 Fixed Costs: Selling Costs 29,700 Administrative Costs 9.900 39.600 Operating Income $ 29,700 Krazy Cream sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.80. A dozen custard-filled donuts sells for $8.00, with total variable cost of $3.60 per dozen. 1. Calculate the weighted average contribution margin 2. Determine Krazy Cream's monthly breakeven point in dopens 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 forced 3. Computer Krazy Cream's margin of safety in dollars for August 2014 4. Compute the degree of operating leverage for Krazy Cream Donuts. Estimate the new operating income il 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.)