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The contribution margin income statement of Krazy Kustard Donuts for March 2008 follows: Krazy Kustard sells 2 dozen plain donuts for every dozen custard-filled donuts.
The contribution margin income statement of Krazy Kustard Donuts for March 2008 follows: Krazy Kustard sells 2 dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $6, with a variable cost of $2 per dozen. A dozen custard-filled donuts sells for $7, with a variable cost of $4.20 per dozen. Requirements 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, (pp. 1069-1071) Compute Krazy Kustard's margin of safety in dollars for March 2008. (p. 1058) If Krazy Kustard can increase monthly sales volume by 10 %, what will operating income be? (The sales mix remains unchanged.)(p. 1061)
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