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The contribution margin income statement of Creamy Donuts for August 2018 follows: Creamy sells four dozen plain donuts for every dozen custard filled donuts. A

The contribution margin income statement of Creamy Donuts for August 2018 follows:
Creamy sells four dozen plain donuts for every dozen custard filled donuts. A dozen plain donuts sells for $4, with total variable cost of $1.60 per dozen. A dozen custard filled donut sells for $8, with total variable cost of $3.20 per dozen.
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Requirements 1. Calculate the weighted-average contribution margin. 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. 3. Compute Creamy's margin of safety in dollars for August 2018, 4. Compute the degree of operating leverage for Creamy 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.) i Data Table Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 129,000 Variable Costs: Cost of Goods Sold $ 32,600 Selling Costs 17,400 1,600 Administrative Costs 51,600 77,400 Contribution Margin Fixed Costs: Selling Costs 25,920 8,640 Administrative Costs 34,560 S Operating Income 42,840 The contribution margin income statement of Creamy Donuts for August 2018 follows: Click the icon to view the contribution margin income statement.) Requirement 1. Calculate the weighted average contribution margin. (Round all currency amounts to the ne Plain Total Sales price per unit Variable cost per unit Contribution margin per unit 4.00 1.60 Filled 8.00 3.20 2.40 4.80 X Sales mix in units 4 1 5 9.60 4.80 14.40 Contribution margin Weighted average contribution margin per unit 2.88 Requirement 2. Determine Creamy's monthly breakeven point in dozens of plain donuts and custard-filled do 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 Entor a "n" for any yarn halonroe Enter currency amount to the Requirement 2. Determine Creamy's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answer by prep 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 Enter a "0" for any zero balances. Enter currency amounts to the nearest cent Abbreviation used, Weighted-avg. CM = weighted-average con 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 o The contribution margin income statement of Creamy Donuts for August 2018 follows: Click the icon to view the contribution margin income statement.) Prove your answer by preparing a summary contribution margin income statement at the breakeven level Creamy Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Creamy's margin of safety in dollars for August 2018. (The contribution margin ir Margin of safety in dollars Choose from any list or enter any innimher in the innuit field and the man Requirement 4. Compute the degree of operating leverage for Creamy Donuts. Estimate the new operating income if total 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 d Degree of operating leverage Estimate the new operating income if total sales increase by 40%. (Round interim calculations to four decimal places and yo The estimated operating income will be Requirement 5. Prove your answer to Requirement 4 by preparing a contribution margi Creamy Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Choose from any list or enter any number in the input fields and then continue to th

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