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The contribution margin income statement of Creative Donuts for August 2018 follows. The contribution margin income statement of Creative Donuts for August 2018 Creative sells

The contribution margin income statement of Creative Donuts for August 2018 follows.

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The contribution margin income statement of Creative Donuts for August 2018 Creative sells five dozen plain donuts for every dozen custard-filled donuts. A follows dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.80 per dozen. EB (Click the icon to view the contribution margin income statement.) Read the requirements Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent) Plain Filled Total Contribution margin Weighted-average contribution margin per unit Creative Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue 130,000 Variable Costs Cost of Goods Sold Selling Costs Administrative Costs $ 32,200 17,200 2,600 52,000 78,000 Contribution Margin Fixed Costs: Selling Costs 36,450 12,150 48,600 Administrative Costs $ 29,400 Operating Income 1. 2. Calculate the weighted-average contribution margin Determine Creative'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. Compute Creative's margin of safety in dollars for August 2018 Compute the degree of operating leverage for Creative Donuts. Estimate the new operating income if total sales increase by 10%. (Round the degree of operating leverage to four decimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.) 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.) 3. 4. 5

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