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The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: Click the icon to view the contribution margin income statement.) Sweet Pea
The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: Click the icon to view the contribution margin income statement.) Sweet Pea 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 $7.00with total variable cost of $2.80 per dozen. Read the requirements. Requirement 1. Calculate the weighted average contribution margin. (Round all currency amounts to the nearest cent.) Plain Filled Total Contribution margin Weighted average contribution margin per unit 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 fixod. 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 "O" for any zero balances. Enter currency amounts to the nearest cont. Abbreviation used: Weighted-avg. CM = weighted average contribution margin.) = Required sales in units ( 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. 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 "O" for any zero balances.) Sweet Pea Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Requirement Compute Sweet Pea's margin of safety in dollars for August 2024. (The contribution margin income statement provided should be used to determine any expected results.) = Margin of safety in dollars Requirement 4. Compute the degree of operating leverage for Sweet Pea 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.) Begin by computing the degree of operating leverage for Sweet Pea Donuts, (Round the degree of operating leverage to four decimal places, X.XXXX.) = Degree of operating leverage Estimate the new operating income if total sales increase by 30%. (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 Requirement 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.) Sweet Pea Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Data Table Sweet Pea Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 126,000 Variable Costs: : Cost of Goods Sold 32,100 Selling Costs 17,300 Administrative Costs 1,000 50,400 Contribution Margin 75,600 $ Fixed Costs: Selling Costs 36,450 12,150 Administrative Costs 48,600 $ 27,000 Operating Income
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