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The contribution margin income statement of Cosmic Donuts for August 2024 follows: Cosmic sells two dozen plain donuts for every dozen custard-filled donuts. A dozen
The contribution margin income statement of Cosmic Donuts for August 2024 follows: Cosmic sells two dozen plain donuts for every dozen custard-filled donuts. A dozen plain (Click the icon to view the contribution margin income statement.) donuts sells for $3.40, with total variable cost of $1.36 per dozen. A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.80 per dozen. Read the requirements. Data table Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) 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 stateme it the breakeven level of sales. Show only two categories of costs: variable and fixed. Ne'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 products-total 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.) ++++1)1)=Requiredsalesinunits= Determine Cosmic'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 Requirement 3. Compute Cosmic's margin of safety in dollars for August 2024. (The contribution margin income statement provided should be used to determine any expected results.) =Marginofsafetyindollars = Requirement 4. Compute the degree of operating leverage for Cosmic Donuts. Estimate the new operating income if total sales increase by 10%. (Round the degree of operating leverage to fol lecimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.) Begin by computing the degree of operating leverage for Cosmic Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX.) =Degreeofoperatingleverage= Estimate the new operating income if total sales increase by 10%. (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 Cosmic Donuts Contribution Margin Income Statement Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 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.) Cosmic Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income
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