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The contribution margin income statement of Delectable Donuts for August 2012 follows: DELECTABLE DONUTS Contribution Margin Income Statement For the Month of August 2012 Sales
The contribution margin income statement of Delectable Donuts for August 2012 follows: | ||||||||||
DELECTABLE DONUTS Contribution Margin Income Statement For the Month of August 2012 | ||||||||||
Sales revenue | $150,000 | |||||||||
Variable costs: | ||||||||||
Cost of goods sold | $41,000 | |||||||||
Marketing costs | 15,000 | |||||||||
General and administrative costs | 4,000 | 60,000 | ||||||||
Contribution margin | $90,000 | |||||||||
Fixed costs: | ||||||||||
Marketing costs | 37,800 | |||||||||
General and administrative costs | 12,600 | 50,400 | ||||||||
Operating income | $39,600 | |||||||||
Delectable 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 donuts sells for $5, with total variable cost of $2 per dozen. | ||||||||||
Requirements: | ||||||||||
1. Calcuate 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. |
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