Question
The contribution margin income statement of Creative Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Requirement 1.
The contribution margin income statement of Creative Donuts for August 2024 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 nearest cent.) Plain Filled Total Sales price per unit 3.00 6.00 Variable cost per unit 1.35 2.70 Contribution margin per unit 1.65 3.3 Sales mix in units C... Creative sells two dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $3.00, with total variable cost of $1.35 per dozen. A dozen custard-filled donuts sells for $6.00, with total variable cost of $2.70 per dozen. Read the requirements. Contribution margin Weighted-average contribution margin per unit Requirement 2. 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 br 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. (Comple Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Fixed costs + Target profit Weighted-avg. CM per unit = Required sales in units )= = Determine Creative'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.) Creative Donuts Plain Contribution Margin Income Statement Filled Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Requirements 1. Calculate the weighted-average contribution margin. 2. 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. 3. Compute Creative's margin of safety in dollars for August 2024. 4. 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.) 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.) Data table Creative Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 130,000 Variable Costs: Cost of Goods Sold Selling Costs $ 32,800 17,100 8.600 58,500 Administrative Costs Contribution Margin 71,500 Fixed Costs: Selling Costs 14,850 4,950 19,800 Administrative Costs $ 51,700 Operating Income X
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