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The contribution margin income statement of Trepani Donuts for August 2018 follows: Click the icon to view the contribution margin income statement.) Trepani sells five
The contribution margin income statement of Trepani Donuts for August 2018 follows: Click the icon to view the contribution margin income statement.) Trepani sells five dozen plain donuts for every dozen custard-filed 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 currency amounts to the nearest cent) Plain Filled Total x Contribution margin Weighted average contribution margin per unit Requirement 2. Determine Tropani's monthly breakeven point in dozens of plain danuts 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. Well 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 '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 11 Determine Tregani's monthly breakoven point in dozens af 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 "' for any zero balances.) Trepani Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Trepani'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 Trapani Donuts. Estimate the new operating income if total sales increase by 10% (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 Trepani Donuts. (Round the degree of operating leverage to four decimal places, XXXXX.) - Degree of operating leverage 1 Estimate the new operating income if total sales increase by 10%. (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 to Requirement 4 by preparing a contribution margin income statement with a 10% increase in total sales. (The sales mix remains unchanged.) Trepani Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Trepani Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue 130,000 Variable Costs: Cost of Goods Sold $ 32,200 Selling Costs 17,500 Administrative Costs 2,300 52,000 Contribution Margin 78,000 Fixed Costs: Selling Costs 36,450 Administrative Costs 12,150 48,600 $ 29,400 Operating Income
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