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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 sells five
The contribution margin income statement of Creamy Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Creamy 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 i Data Table Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Creamy's monthly breakeven point in dozens of plain donuts and summary contribution margin income statement at the breakeven level of sales. Show only twd Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 126,000 Variable Costs: Cost of Goods Sold $ Selling Costs 17.400 400 50.400 Administrative Costs Contribution Margin 75.600 Fixed Costs Selling Costs 37,800 12,600 50.400 Administrative Costs $ 25,200 Operating Income We'll begin with the breakeven point. Start by selecting the formula and entering the amounts products-total dozens of donuts to be sold (Complete all answer boxes. Enter a "0" for any Abbreviation used: Weighted-avg. CM = weighted average contribution margin.) Determine Creamy's monthly breakeven point in dozens of plain donuts and custard-filed dong The breakeven point is dozen plain donuts and dozen custard-sile Prove your answer by preparing a summary contribution margin income statement at the breal and fixed. (Enter a "0" for any zero balances.) Print Done Requirement 2. Determine Creamy'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. We'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 answer boxes. Enter a "0" for any zero balances. Enter currency amounts to the nearest cent Abbreviation used: Weighted-avg. CM = weighted average contribution margin.) = Required sales in units 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.) Creamy Donuts Contribution Margin Income Statement Plain Filled Net Sales Revenue Variable Costs Total Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Creamy's margin of safety in dollars for August 2018. (The contribution margin income statement provided should be used to determine any expected results.) J = Margin of safety in dollars Requirement 4. Compute the degree of operating leverage for Creamy Donuts. Estimate the new operating income if total sales increase by 30%. (Round the degree of operating leverage to four decimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.) Begin by computing the degree of operating leverage for Creamy Donuts. (Round the degree of operating leverage to four decimal places, Xxxxx.) = Degree of operating leverage Estimate the new operating income if total sales increase by 30% (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 5 Requirement 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 30% 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 Fired Costs Onerating Income
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