sells 2 dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $ 6, with a variable cost of $ 2.. A dozen custard-filled donuts sells for $ 7, with a variable cost of $ 4.20 per dozen.

Requirements 1. 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.

2. Compute Too Sweet's margin of safety in dollars for May 2012.

3. If Too SweetToo Sweet can increase monthly sales volume by 10%, what will operating income be? (The sales mix remains unchanged.) Determine Too Sweet'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.

Plain/Doz	Filled Doz	Total
Sales revenue Variable costs Contribution margin Fixed costs Operating income

Requirement 2. Compute Too Sweet's margin of safety in dollars for May 2012. The margin of safety in dollars is $ _______. Requirement 3. If Too Sweet Donuts can increase sales revenue by 10%, keeping the sales mix the same, operating income will be _______. (Round the contribution margin to three decimal places and your final answer to the nearest whole dollar.)

C:\Users\MaMaHawk68\Documents\Requirement 2