The contribution margin income statement of

Cosmic

Donuts for

August

2018

follows:

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(Click the icon to view the contribution margin income statement.)

Cosmic

sells

five

dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for

$4.00,

with total variable cost of

$1.60

per dozen. A dozencustard-filled donuts sells for

$8.00,

with total variable cost of

$3.20

per dozen.

There more then 1 requirement i will answers to that req's as well but i can't see without finishing this one first

P20-46B (similar to) Question Help The contribution margin income statement of Cosmic Donuts for August 2018 follows: E: (Click the icon to view the contribution margin income statement.) Cosmic sells five dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $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 Sales price per unit 8 Data Table Variable cost per unit 1.6 3.2 Requirements Sales mix in units Cosmic Donuts Contribution margin Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 127,000 Weighted-average contribution margin per unit Variable Costs: $ 32,500 Cost of Goods Sold Selling Costs 1. Calculate the weighted average contribution margin. 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. 3. Compute Cosmic's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Cosmic Donuts. Estimate the new operating income if total sales increase by 40%. (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 40% increase in total sales. (The sales mix remains unchanged.) 17,300 1,000 50,800 Administrative Costs Contribution Margin 76,200 Fixed Costs: Selling Costs 37,800 12,600 Administrative Costs 50,400 Print Done 25,800 Operating Income Print Done Data Table Requirements Cosmic Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 127,000 Variable Costs: Cost of Goods Sold $ 32,500 17,300 1. Calculate the weighted average contribution margin. 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. 3. Compute Cosmic's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Cosmic Donuts. Estimate the new operating income if total sales increase by 40%. (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 40% increase in total sales. (The sales mix remains unchanged.) Selling Costs 1,000 50,800 Administrative Costs Contribution Margin 76,200 Fixed Costs: Selling Costs 37,800 12,600 50,400 Administrative Costs Print Done $ 25,800 Operating Income Print Done