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The contribution margin income statement of Delectable Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Delectable sells two
The contribution margin income statement of Delectable Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Delectable sells two dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $3.50, with total variable cost of $1.40 per dozen. A dozen custard-filled donuts sells for $6.50, with total variable cost of $2.60 per dozen. Read the femuirement Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) Sales price per unit Variable cost per unit Contribution margin per unit Plain Filled Total $ 3.50 $ 6.50 1.40 2.60 2.10 3.90 Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Delectable'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 Delectable's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Delectable Donuts. Estimate the new operating income if total sales increase by 20%. (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 20% increase in total sales. (The sales mix remains unchanged.) Print Done - X Data table Delectable Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 129,000 Variable Costs: Cost of Goods Sold $ 32,100 Selling Costs 17,000 Administrative Costs 2,500 51,600 Contribution Margin 77,400 Fixed Costs: Selling Costs 21,870 Administrative Costs 7,290 29,160 $ 48,240 Operating Income Print Done
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