The contribution margin income statement of Krazy Kustard Donuts for August 2018 follows:

Krazy Kustard Donuts
Contribution Margin Income Statement
Month Ended August 31, 2018
Net Sales Revenue			$130,000
Variable Costs:
	Cost of Goods Sold	$32,400
	Selling Costs	17,400
	Administrative Costs	2,200	52,000
Contribution Margin			78,000
Fixed Costs:
	Selling Costs	36,450
	Administrative Costs	12,150	48,600
Operating Income			$29,400

Katzy sells five dozen plain donuts for every dozen custard-filled donuts. A 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.

Requirement 2. Determine Krazy Kustard'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.

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 productslong dashtotal

dozens of donuts to be sold

(	Fixed costs	+	Target profit	) /	Weighted-avg. CM per unit	=	Required sales in units
(	48600	+	0	) /	2.7	=	18000

Determine

Krazy Kustard

monthly breakeven point in dozens of plain donuts and custard-filled donuts.

The breakeven point is

15000

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.)

Krazy Kustard Donuts
Contribution Margin Income Statement
	Plain	Filled	Total
Net Sales Revenue	60000	21000	81000
Variable Costs	24000	8400	32400
Contribution Margin	36000	12600	48600
Fixed Costs			48600
Operating Income			0