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The contribution margin income statement of Too Sweet Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Too Sweet
The contribution margin income statement of Too Sweet Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Too Sweet 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 requirements Requirement 1. Calculate the weighted-average contribution margin. (Round currency amounts to the nearest cent.) Plain Filled Total Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Too Sweet'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 productstotal 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.) = Required sales in units Data Table Determine Too Sweet'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 f costs: variable and fixed. (Enter a "O" for any zero balances.) Too Sweet Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Too Sweet Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 127,000 Variable Costs: Cost of Goods Sold $ 32,400 Selling Costs 17.100 Administrative Costs 1,300 50.800 Contribution Margin 76,200 Fixed Costs: Selling Costs 37.800 12.600 50.400 Administrative Costs 25,800 Operating Income Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Too Sweet's margin of safety dollars for August 2024. (The contribution margin income statement provided should be used to determine any expected results.) = Margin of safety in dollars Print Done Requirement 4. Compute the degree f operating leverage for Too Sweet Donuts. Estimate the new operating income if total sales increase by 40%. (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 Too Sweet Donuts. (Round the degree of operating leverage to four decimal places, X.XXXX.) Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 4. Compute the degree of operating leverage for Too Sweet Donuts. Estimate the new operating income if total sales increase by 40%. (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 Too Sweet 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 40%. (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 Requirement 4 by preparing a contribution margin income statement with a 40% increase in total sales. (The sales mix remains unchanged.) Too Sweet Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income
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