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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 Sweet
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 $8.00, with total variable cost of $3.20 per dozen. Read the requirements. ... Data Table Requirement 1. Calculate the weighted average contribution margin. (Round all currency amounts to the nearest cent.) Plain Filled Total Too Sweet Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 128,000 X Variable Costs: Cost of Goods Sold $ 32,200 Contribution margin Selling Costs Weighted average contribution margin per unit 17,400 1,600 Administrative Costs 51,200 Contribution Margin 76,800 Fixed Costs: Selling Costs 32,400 10,800 43,200 Administrative Costs 33,600 Operating Income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. - Requirements 1. Calculate the weighted average contribution margin. 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. 3. Compute Too Sweet's margin of safety in dollars for August 2018. 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.) 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 40% increase in total sales. (The sales mix remains unchanged.) Print Done
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