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The contribution margin income statement of Kaeden Donuts for August 2025 follows: View the contribution margin income statement. Read the requirements. Requirement 1. Calculate the
The contribution margin income statement of Kaeden Donuts for August 2025 follows: 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.) Contribution margin income statement Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Kaeden Donuts' 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 Kaeden Donuts' margin of safety in dollars for August 2025. 4. Compute the degree of operating leverage for Kaeden 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.)
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