Somprehensive Problem

Question $1,$ PM$5-46$B $($similar to$)$

HW Score: $0\%,0$ of $25$ points

Part $1$ of $8$

Points: $0$ of $15$

The contribution margin income statement of Sweet Pea Donuts for August $2024$ follows:

$($Click the icon to view the contribution margin income statement.$)$

Sweet Pea sells eight dozen plain donuts for every three dozen custard$-$filled donuts. A dozen plain donuts sells for $$3\mathrm{.}70,$ with total variable cost of $$1\mathrm{.}48$ per dozen. A dozen custard$-$filled donuts sells for $$7\mathrm{.}00,$ with total variable cost of $$2\mathrm{.}80$ per dozen.

Read the requirements.

Requirement $1.$ Calculate the weighted$-$average contribution margin. $($Round all currency amounts to the nearest cent.$)$

Requirements

Calculate the weighted$-$average contribution margin.

Determine Sweet Pea'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.

Compute Sweet Pea's margin of safety in dollars for August $2024.$

Compute the degree of operating leverage for Sweet Pea 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.$)$

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.$)$

Data table