Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The contibution matgin income statement of Delectable Donuts for Auggst 2024 follows: (Click the icon to view the contizution margin incoree statement) Delectable sells two

image text in transcribed
image text in transcribed
image text in transcribed
The contibution matgin income statement of Delectable Donuts for Auggst 2024 follows: (Click the icon to view the contizution margin incoree statement) Delectable sells two dozen plain donuts for every dozen austard-filed donuts. A doten plain donutn sells for $300, with total variable cost of 51,35 per dowen. A dozen custard fillsd donuts sels for $600. with total variable cost of $270 per dozen Requirement 1. Calculate the weighted wverage contribution margin. (Round all currency amounts to the nearest cent) Data table Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Delectable'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 Delectable's margin of safety in dollars for August 2024. 4. 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.) 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost And Management Audit

Authors: Dr Veena Soni

1st Edition

6202551992, 978-6202551991

More Books

Students also viewed these Accounting questions

Question

Create a workflow analysis.

Answered: 1 week ago