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Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to Plain Filled Total Sales price per unit 5 4.00 $ 8.00 1.60 3.20
Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to Plain Filled Total Sales price per unit 5 4.00 $ 8.00 1.60 3.20 Variable cost per unit Contribution margin per unit 2.40 4.80 Sales mix in units 5 1 6 Contribution margin 9 12.00 $ 4.80 $ 16.80 Weighted average contribution margin per unit 280 Requirement 2. Determine Krazy Cream's monthly breakeven point in dozens of plain donuts and custar We'll begin with the breakeven point. Start by selecting the formula and entering the amounts to compute Weighted avg CM = weighted-average contribution margin.) X Data table Krazy Cream Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 128,000 Variable Costs: Cost of Goods Sold $ 32,300 Selling Costs 17,200 1,700 51,200 Administrative Costs Contribution Margin 76,800 Fixed Costs: Selling Costs 37,800 12,600 50.400 Administrative Costs $ 26,400 Operating Income Print Done -- equirements 1. Calculate the weighted average contribution margin 2. Determine Krazy Cream'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 Krazy Cream's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Krazy Cream 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.) 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) Print Done Krazy Cream sells five dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $160 per dozen. A dozen custard-filled donuts sells for $800 with total variable cost of $3.20 per dozen Read the requirements
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