Question: please answer the operating income under requirement 4 The contribution margin income statement of Delectable Donuts for May 2024 follows Click the icon to view
please answer the operating income under requirement 4

The contribution margin income statement of Delectable Donuts for May 2024 follows Click the icon to view the contribution margin income statement) ) 3 Delectable 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 $8.00 with total variable cost of $3 20 per dozen Requirement 1. Calculate the weighted average contribution margin (Round all currency amounts to the nearest cont.) Plain Filled Total Sales price per unit 5 400 5 8.00 Variable cost per unit 160 3.20 Contribution margin per unit 2.40 4.80 Sales mix in units 5 1 6 5 1200S 480 16.80 Contribution margin 5 2.80 Weighted average contribution margin par unit 0 Requirement 2. Determine Delectable'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 Salds Enter a "U" for any zero balances. Enter currency amounts to the nearest cent Abbreviation used: Weighted-avg. CM = weighted- average contribution margin.) Fixed costs Target profit ) - Weighted avg CM per unit = Required sales in units (5 50.400 - S 2 80 18 000 Determine Delectable's monthly breakeven point in dozens of plain donuts and custard-filled donuts The breakeven point is 15.000 dozen plain donuts and 3.000 dozen custard-led 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 "O" for any zero balances. Delectable Donuts Contribution Margin Income Statement Plain Filled Total Net Salas Revenue $ 50,000 5 24000 $ 84.000 Variable Costs 24,000 9.600 33.600 36.000 Contribution Margin $ 14,400 50.400 50.400 Fixed Costs 0 Operating Income Requirement J. Compute Delectable's margin of safety in dollars for May 2024 (The contribution margin income statement provided should be used to determina any expected results) Expected sales in dollars Breakeven sales in dollars Margin of safely in dollars $ 84,000 ES 41.000 Requirement 4. Compute the degree of operating leverage for Delectable 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) . Bagin by computing the cagree of operating leverage for Delectable Donuts (Round the degree of operating leverage to four decimal places, XXX) Contribution margin Operating income Degree of operating laverage 75 000 24 600 3.0488 125.000 Estimate the new operating income il 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 Data table Delectable Donuts Contribution Margin Income Statement Month Ended May 31, 2024 Net Sales Revenue $ 125,000 Variable Costs Cost of Goods Sold S 32,100 Selling Costs 17,400 Administrative Costs 500 50,000 Contribution Margin 75,000 Fixed Costs Selling Costs 37 800 Administrative Costs 12 600 50 400 Operating Income 5 24600
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
