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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.

  1. Calculate the weighted-average contribution margin.
  2. Determine Sugar Donuts monthly breakeven point in dozens of plain donuts and custard-filled donuts.
  3. Compute Sugar Donuts margin of safety in dollars for August 2024.
  4. 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.)
  5. 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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