Question
The contribution margin income statement of Sugar Donuts for August 2024 follows: SUGAR DONUTS Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales
The contribution margin income statement of Sugar Donuts for August 2024 follows:
SUGAR DONUTS
Contribution Margin Income Statement
Month Ended August 31, 2024
Net Sales Revenue | $125,000 | |
Variable Costs: | ||
Cost of Goods Sold | $32,100 | |
Selling Costs | 17,400 | |
Administrative Costs | 6,750 | 56,250 |
Contribution Margin | 68,750 | |
Fixed Costs: | ||
Selling Costs | 24,750 | |
Administrative Costs | 8,250 | 33,000 |
Operating Income | $ 35,750 | |
Sugar Donuts sells three dozen plain donuts for every dozen custard-filled donut. A dozen plain donuts sell for $4.00, with a total variable cost of $1.80 per dozen.A dozen custard-filled donuts sells for $8.00, with a total variable cost of $3.60 per dozen.
Requirements:
*Create an excel sheet for each requirement in the project within one excel document.
OR
*Create a word document and label each section with the requirement number in the project.
- Calculate the weighted-average contribution margin.
- Determine Sugar Donuts monthly breakeven point in dozens of plain donuts and custard-filled donuts.
- Compute Sugar Donuts margin of safety in dollars for August 2024.
- Compute the degree of operating leverage for Sugar Donuts.Estimate the new operating income if total sales increase by 30%. (Round the degree of operating leverage to four decimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.)
- Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 30% increase in total sales. (The sales mix remains unchanged.)
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