Question: The contribution margin income statement of Creative Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement) Creative sells five
The contribution margin income statement of Creative Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement) Creative sells five dozen plain donuts for every dozen oustand-led donuts A dozen plain donuts sells for $4.00, with total variable cost of $1.00 per dozen. A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.30 per dozen Read the requirements 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 Creative's monthly breakeven point in dozens of plain donuts and custard-filed 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 fired 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 al input felds Enter a 10 for any zero balances Enter currency amounts to the nearest cent. Abbreviation used Weighted-avg CM v daverage contribution margin) Determine Creative's monthly breakeven point in dozens of plain donuts and custare-filled donuts dezen plain donuts and cozen custard-ed donuts The breakeven points Choose from any list or enter any number in the input fields and then continue to the next question Required sales in units Creative Donuts Contribution Margin Income Statement Filled Plain Net Sales Revenue Variable Costs Total Contribution Margin Fired Costs Operating Income Requirement 3. Compute Creative's margin of safety in dollars for August 2018 (The contribution margin income statement provided should be used to determine any expected results) Margin of safety in dolars Requirement 4. Compute the degree of operating leverage for Creative 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) Begin by computing the degree of operating leverage for Creative Donuts (Round the degree of operating leverage to four decimal places Xxx Degree of operating leverage Creative Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income Choose from any list or enter any number in the Creative Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue Variable Costs: Cost of Goods Sold Selling Costs Administrative Costs 69 $ 130,000 32,400 17,400 2,200 52,000 78.000 Contribution Margin Fixed Costs: Selling Costs 36,450 12.150 Administrative Costs Operating Income 69 48,600 29.400



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