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The contribution margin income statement of Trepani Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Trepani sells five
The contribution margin income statement of Trepani Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement.) Trepani 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 $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 Contribution margin Weighted-average contribution margin per unit Requirement 2. Determine Trepani'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 ): ) - + Determine Trepani'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 "0" for any zero balances.) Trepani Donuts Contribution Margin Income Statement Plain Filled Total Net Sales Revenue Variable Costs 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 2024. (The contribution margin income statement provided should used to determine any expected results.) Margin of safety in dollars Requirement 4. Compute the degree of operating leverage for Trepani 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 Trepani 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 20%. (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 20% increase in total sales. (The sales mix remains unchanged.) Trepani Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Choose from any list or enter any number in the innut fields and then continue to the next question Requirement 5. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 20% increase in total sales. (The sales mix remains unchanged.) Trepani Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs perating Income X ts for - Data Table 60 P Trepani Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue 125,000 neai Variable Costs: he sa Cost of Goods Sold 32,400 Selling Costs 17,500 100 Administrative Costs 50,000 Contribution Margin 75,000 Fixed Costs: Selling Costs 36,450 12,150 Administrative Costs 48,600 26,400 Operating Income Print Done
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