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The contribution margin income statement of Top Sweet Donuts for August 2018 follows: Tao Sweat sells five dazen plain donuts for every dazen custard-filed donuts.
The contribution margin income statement of Top Sweet Donuts for August 2018 follows: Tao Sweat sells five dazen plain donuts for every dazen custard-filed donuts. A dozen plain donuts sells for $4.00, with total variable Click the icon to view the contribution margin income statement.) cost of $1.00 per dozen. A dozen custard-filled donuts sels for $8.00, with total variable cost of $3.20 per dozen Read the requirements. Requirement 2. Determine Too Sweet's monthly breakeven point in dozens of plain donuts and custard-Filed 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 products total dozens of donuts to be sold (Complete all answer boxes. Enter a 'O' for any zero balances Enter currency amounts to the nearest cant Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Fixed costs Target profit Weighted-avg. CM ratio Required sales in units i 50.400 D 2.70 18,667 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 of costs: variable and fixed. (Enter a 'O' for any zero balances.) Too Sweet Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Contribution Margin Fbed Costs Operating Income Requirement 3. Compule Too Sweel's margin of safely in dollars for August 2018. (The contribution margin income statement provided should be used to determine any expected results.) Margin of safety in dollars Choose from any list or enter any number in the input fields and then continue to the next question SI in ma X 1 Data Table zens T d Too Sweet Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 129,000 Variable Costs: Cost of Goods Sold 32,400 Selling Costs 17,100 Administrative Costs 2,100 51,600 ter a $ Contribution Margin 77,400 Fixed Costs: Selling Costs 37,800 12,600 50,400 Administrative Costs $ 27,000 Operating Income n Print Done ecte 1 X 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 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.) Print Done
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