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The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: E: (Click the icon to view the contribution margin income statement.) Sweet
The contribution margin income statement of Sweet Pea Donuts for August 2024 follows: E: (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 $7.00, with 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.) Requirements Plain Filled Total Data Table Sweet Pea Donuts Contribution margin Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 130,000 Variable Costs: 1. Calculate the weighted average contribution margin. 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. 3. Compute Sweet Pea's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Sweet Pea Donuts. Estimate the new operating income if total sales increase by 20% (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 20% increase in total sales. (The sales mix remains unchanged.) Weighted average contribution margin per unit Cost of Goods Sold $ 32,600 Selling Costs 17,100 2,300 Administrative Costs 52,000 78,000 Contribution Margin Fixed Costs: Print Done Selling Costs 36,450 Administrative Costs 12,150 48,600 $ 29,400 Operating Income Print Done
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