Requirements - 1. Calculate the weighted-average contribution margin. 2. Determine Too Sweet'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 Too Sweet's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Too Sweet 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.) 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.) rint A Data Table Month Ended August 31, 2018 Net Sales Revenue $ 126,000 Variable Costs: Cost of Goods Sold $ 32,600 Selling Costs 17,600 Administrative Costs 200 50,400 Contribution Margin 75,600 Fixed Costs: Selling Costs 25,920 Administrative Costs 8,640 34,560 $ 41,040 Operating Income Print Done The contribution margin income statement of Too Sweet Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Too Sweet sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $8.00, with total variable cost of $3.20 per dozen. Read the requirements Requirement 1. Calculate the weighted average contribution margin. (Round all currency amounts to the nearest cent.) Plain Filled Total Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Trepani'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. 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 productstotal dozens of donuts to be sold. (Complete all input fields. Enter a "0" 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 Trepani'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. 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.) Trepani Donuts Contribution Margin Income Statement Plain Filled Net Sales Revenue Total Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Trepani'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 Trepani Donuts. Estimate the new operating income if total sales increase by. (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 Trepani Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX.) Degree of operating leverage Estimate the new operating income if total sales increase by 40% (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 40% increase in total sales. (The sales mix remains unchanged.) Trepani Donuts Contribution Margin Income Statement Month Ended August 1, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income