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The contribution margin income statement of Too Sweet Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Too
The contribution margin income statement of Too Sweet Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Too Sweet sells four 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 curre Plain Filled Total Contribution margin Weighted-average contribution margin per unit Requirement 2. Determine Too Sweet's monthly breakeven point in dozens of plain donut contribution margin income statement at the breakeven level of sales. Show only two cate We'll begin with the breakeven point. Start by selecting the formula and entering the amou dozens of donuts to be sold. (Complete all input fields. Enter a "0" for any zero balances CM weighted-average contribution margin.) Data table Too Sweet Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 130.000 Variable Costs: Cost of Goods Sold 32,100 Selling Costs 17,400 Administrative Costs 2.500 52.000 Contribution Margin 78,000 Fixed Costs: Seling Costs 24,840 Administrative Costs 8.280 33,120 44,880 Operating Income dozen custard Determine Too Sweet's monthly breakeven point in dozens of plain donuts and custard- The breakeven point is dozen plain donuts and Prove your answer by preparing a summary contribution margin income statement at the b (Enter a "0" for any zero balances.) Too Sweet Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Print Done Operating Income Requirement 3. Compute Too Sweet's margin of safety in dollars for August 2018. (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 Too Sweet 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.) Begin by computing the degree of operating leverage for Too Sweet Donuts. (Round the degree of operating leverage to four decimal places, xxxxxx)
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