The contribution margin income statement of Creamy Donuts for August $2024$ follows:

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

Creamy sells five dozen plain donuts for every two dozen custard$-$filled donuts. A dozen plain donuts sells for $$4\mathrm{.}00,$ with total variable cost of $$1\mathrm{.}80$ per dozen. A dozen custard$-$filled donuts sells for $$6\mathrm{.}80,$ with total

variable cost of $$3\mathrm{.}06$ per dozen.

Read the requirements.

Weighted$-$average contribution margin per unit

Determine Creamy'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 balances.$)$

Requirement $3.$ Compute Creamy's margin of safety in dollars for August $2024.($The contribution margin income statement provided should be used to determine any expected results.$)$

Begin by computing the degree of operating leverage for Creamy Donuts. $($Round the degree of operating leverage to four decimal places, X$.$XXXX$.)$

$,=$ Degree $of$ operating leverage

$,=$

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

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.$)$

Creamy Donuts

Contribution Margin Income Statement

Month Ended August $31,2024$

Net Sales Revenue

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

Data table