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The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: Sweet Pea sells two dozen plain donuts for every dozen custard-filled donuts.
The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: Sweet Pea sells two dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $3.50, with total variable cost of$1.40 per dozen. A dozen custard-filled donuts sells for $6.50, with total variable cost of$2.60 per dozen.
Sweet Pea Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $126,000 Variable Costs: CostofGoodsSoldSellingCostsAdministrativeCosts$17,50050032,40050,40075,600 Fixed Costs: Selling Costs Administrative Costs Operating Income Requirement 2. Determine Sweet Pea'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 products-total dozens of donuts to be sold. (Complete all input fields. Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Determine Sweet Pea's monthly breakeven point in dozens of plain donuts and custard-filled donuts. The breakeven point is dozen plain donuts and dozen custard-filled donuts. Requirement 4. Compute the degree of operating leverage for Sweet Pea Donuts. Estimate the new operating income if total sales increase by 10%. (Round the degree of operating leverage to lecimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.) Begin by computing the degree of operating leverage for Sweet Pea Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX.) Requirement 4. Compute the degree of operating leverage for Sweet Pea Donuts. Estimate the new operating income if total sales increase by 10%. (Round the degree of operating leverage to f decimal places and the final answer to the nearest dollar. Assume the sales mix remains unchanged.) Begin by computing the degree of operating leverage for Sweet Pea Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX.) 1=Degreeofoperatingleverage= Estimate the new operating income if total sales increase by 10%. (Round interim calculations to four decimal places and your final answer to the nearest dollar. Assume the sales mix remains unchanged.) The estimated operating income will be
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