Trepani sells five doezen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $7, with total variable cost of $2.80 per dozen.

i i Requirements 1 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 2018. 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.) A doz Trepani Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue 5 127,000 Variable Costs: Cost of Goods Sold y contrit Selling Costs $ 32,400 17.600 800 g Administrative Costs 50.800 ductst Contribution Margin 76,200 gh Fixed Costs: Selling Costs 36.450 12.150 LIS Administrative Oosts 48.600 S. 27 600 oze Operating Income Requirement 2. Determine Trepants monthly breakeven point in dozens of plain donuts and custard sed donuts Prove your answer by preparing a summary contribution margin income sales. Show only two categories of costs variable and fored We'll begin with the breakeven point. Start by selecting the formule and entering the amounts to compute the breakeven point in units for the package of productorens of donut Enter a "for any zero balances Enter currency amounts to the nearest cont Abortion used. Weighed avg CM- Waverage continuar Food costs Target profit > Weighted avg CM per un Recited sales in 18 600 0 5 2.70 13000 Determine Tropanis monthly breakeven point in dozens of pain donuts and custarded donuts The breakeven point is 6.000 dozen plain dents and 12.000 dozen custard led donuts