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The contribution margin income statement of Creamy Donuts for August 2018 follows: Click the icon to view the contribution margin income statement.) Creamy sels four
The contribution margin income statement of Creamy Donuts for August 2018 follows: Click the icon to view the contribution margin income statement.) Creamy sels four dozen plain donuts for every dozen custard-filed donuts. A dozen plain donuts sells for $4.00 with total variable cost of $1.60 per dazom. A dozen custard-filed donuts sells for $4.00, with tatal variable cast of S9 20 per dozen. Rand the renuirements Requirement 1. Calculate weighted average contribution margin. (Round all currency amounts to the nearest cent.) Plain Filled Total Contribution margin Welghted average contribution margin per unit Requirement 2. Determine Creamy's monthly breakaven point in dozens of plain donuts and custard-li les 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 Well begin with the breskoven 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 answer boxes. Enter for any zero balances. Enter currency amounta to the nearest cant. Abbreviation used: Weighted avg. CM = valghted average contribution margin.) | + | = Required sales in unite Determine Creamy's monthly breakeven point in dozens of plain donuts and custard-filled donuts The breakeven point is dozen plain donuts and dozen custarchrilled donuts Prower your answer by preparing a summary contribution margin income statement at the breakewen kvel of sales. Show only taco costegories of costs: variable and fixed. Enter a "O" for any ze balances.) Creamy Donuts Contribution Margin Income Statement Total Nel Sal Revenue Plain Filled Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Creamy's margin of safety in dolars August 2018. (The contribution margin income statement provided should be used to determine any expected results.) = Margin of safety in dolars Requirement 4. Compute the degree of operating leverage for Creamy Donuts Estimate the new aparating 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 uncharged) Begin by computing the degree sporting leverage for Creamy Donuts. (Round the degree of aparating leverage to four decimal places. X.XXXX.) = Degree of operating leverage Estimate the new operating income if total sales increase by 40% (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 s Requirement 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.) Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income ults i Data Table eve Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 129,000 Variable Costs: Cost of Goods Sold 32,300 hix Selling Costs 17,400 1,900 Administrative Costs 51,600 Contribution Margin 77,400 Fixed Costs: Selling Costs 25,920 8,640 Administrative Costs 34,560 $ 42,840 Operating Income Print Done
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