Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The contribution margin income statement of Cosmic Donuts for August 2 0 2 4 follows: ( Click the icon to view the contribution margin income

The contribution margin income statement of Cosmic Donuts for August 2024 follows:
(Click the icon to view the contribution margin income statement.)
Cosmic sells two dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $3.10, with total varial cost of $1.24 per dozen. A dozen custard-fil donuts sells for $7.20, with total variable co of $2.88 per dozen.
Read the requirements.
Review
(i) Click the icon to see the Worked Solution.
Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.)
\table[[,Plain,Filled,Total],[Sales price per unit,$,3.10TT$,7.20,],[- Variable cost per unit,,1.24,2.88,],[Contribution margin per unit,,1.86TT,4.32,],[, Sales mix in units,,2TT,1TT,3],[Contribution margin,$,3.72$??,4.32TT,8.04],[Weighted-average contribution margin per unit,,,,2.68]]
Requirement 2. Determine Cosmic'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.
image text in transcribed

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

Students also viewed these Accounting questions