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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 two dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $3.00, with total variable cost of $1.35 per dozen. A dozen custard-filled donuts sells for $6.00, with total variable cost of $2.70 per dozen. Read the reduirements. Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) Data table Requirements 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 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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