Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The contribution margin income statement of Unique Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement) Unique sells four

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The contribution margin income statement of Unique Donuts for August 2024 follows: (Click the icon to view the contribution margin income statement) Unique 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 BEEL 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 Unique'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 of donuts to be sold. (Complete all input fields. Enter a "o for any zero balances. Enter currency amounts to the nearest cont. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin) 1) Required sales in units Choose from any list or enter any number in the input fields and then continue to the next question Read the requirements. red 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 "O" 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 Unique'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 breakoven level of sales. Show only two categories of costs: variable and fixed. (Enter a "O" for any zero balances) Unique Donuts Contribution Margin Income Statement Plain Filled Net Sales Revenue Total Variable Costs Contribution Morain Choose from any list or enter any number in the input fields and then continue to the next question Read the requirements. COCO Unique Donuts 1 Contribution Margin Income Statement Plain Filled Not Sales Revenue Total Variable Costs Contribution Margin Fixed Costs Operating Income Requirement 3. Compute Unique's margin of safety in dollars for August 2024. (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 Unique 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 tho sales mix remains unchanged.) Choose from any list or enter any number in the input fields and then continue to the next question, Read the cosurements Requirement 4. Compute the degree of operating leverage for Unique 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.) Begin by computing the degree of operating leverage for Unique Donuts. (Round the degree of operating leverage to four decimal places, Xxxxx) Degree of operating loverago Estimate the new operating income if total sales increase by 30% (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 Requirements. Prove your answer to Requirement 4 by preparing a contribution margin income statement with a 30% increase in total salen. (The sales mix remains unchanged.) Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Not Sales Revenue una tar antara.mar in the input 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 30% icrease in total sales (The sales mix remains unchanged.) Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue Variable Contas Contribution Margin Fixed Costa Operating Income Choose from any list or enter any number in the input fields and then continue to the next question. tribution total variable od .00, with total vas ghted-ay Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2024 Net Sales Revenue $ 127,000 Variable Costs: Cost of Goods Sold $ 32,500 Selling Costs 17.100 1,200 Administrative Costs 50,800 Contribution Margin 76,200 Fixed Costs: Selling Costs 25,920 8,640 34,560 Administrative Costs $ 41,640 Operating Income margin per answer by preparin que's mont ament at the in units for the "pach Junts to the nearest c- point. Start ats to be sol ghted-avera units Print Done dozen plain donuts sells for $4.00 with total varia Requirements 1. Calculate the weighted-average contribution margin. 2. Determine Unique'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 Unique's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Unique 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.) mion pre Unid state Ir the near Print Done aven donu weig

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers And Acquisitions Made Simple

Authors: Umran Nayani

1st Edition

8375117522, 979-8375117522

More Books

Students also viewed these Accounting questions