Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The contribution margin income statement of Trepani Donuts for August 2024 follows: Trepani sells two dozen plain donuts for every dozen custard-filled donuts. A Click
The contribution margin income statement of Trepani Donuts for August 2024 follows: Trepani sells two dozen plain donuts for every dozen custard-filled donuts. A Click the icon to view the contribution margin income statement.) dozen plain donuts sells for $3.50, with total variable cost of $1.40 per dozen. A dozen custard-filled donuts sells for $6.50, with total variable cost of $2.60 per dozen. Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent.) 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 products-total dozens Requirement 1. Calculate the weighted-average contribution margin. (Round all currency anounts to tho noares lakeven point in dozens of plain donuts and custard-filed donts. Show only two categories of costs. variable and fixed Ictinn the formula and entering the amounts to compute the break )ata table Trepani Donuts Contribution Margin Income Statement Month Ended August 31, 2024 $126,000 lariable Costs: Print Done Requirements 1. Calculate the weighted-average contribution margin. 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. 3. Compute Trepani's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Trepani 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.) 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.) Requirement 2. Determine Trepani's monthly breakeven point in dozens of piain donuts and custard-filled donuts. Prove your answer by preparing a summary contribution margin income statement at the breakeven kevel 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 input fields. Enter a " 0 " for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weightedaverage contribution margin.) ))=Requiredsalesinunits= t in dozens of plain donuts and custard-filled donuts. lain donuts and dozen custard-filled donuts. contribution margin income statement at the breakeven level of sales. Show only two categories of costs: variable and fixed. (Enter The contribution margin income statement of Trepani Donuts for August 2024 follows: Requirement 4. Compute the degree of operating leverage for Trepani Donts. 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 f operating leverage for Trepari Donuts. (Round the degree of operating leverage to four decimal places, XXXXX.) 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started