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The contribution margin income statement of Sweet Pea Donuts for August 2018 follows: E (Click the loon to view the contribution margin income statement.) Sweet

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The contribution margin income statement of Sweet Pea Donuts for August 2018 follows: E (Click the loon 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 $8.00, with total variable cost of $3.20 per dozen. Read the requl Data table - X $ 125,000 Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) Total $ Plain 4.00 $ Filled 8.00 $ Sales price per unit Variable cost per unit Contribution margin per unit 32.100 17,200 1.100 1.60 Net Sales Revenue Variable Costs: Cost of Goods Sold Selling Costs Administrative Costs Contribution Margin Fixed Costs: Selling Costs 3.20 50,400 2.40 4.80 75,600 x Sales mix in units 1 $ 12.00 $ 4.80 $ 16.80 Contribution margin 37,800 12.600 $ 2.80 Administrative Costs 50,400 Weighted average contribution margin per unit $ 25,200 Operating Income Requirement 2. Determine Sweet Pea's monthly breakeven point in dozens of plain donuts and custard-filled donuts. Prove your answer by 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 zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted average contribution margin.) Print Done + = Required sales in units = + 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 2018. 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 opcraling 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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