The contribution margin income statement of Dandy Donuts for May 2012 follows:

Dandy sells three dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $6, with a variable cost of $3 per dozen. A dozen custard-filled donuts sells for $8, with a variable cost of $4 per dozen.
Requirements
1. Calculate the weighted-average contribution margin.
2. Determine Dandy€™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 Dandy€™s margin of safety in dollars for May 2012.
4. If Dandy can increase the monthly sales revenue from May€™s level by 25%, what will operating income be? (The sales mix remainsunchanged.)

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DANDY DONUTS Contribution Margin Income Statement For the Month of May 2012 $ 190,000 Sales revenue Variable costs: Cost of goods sold $ $6,000 Marketing costs 20,000 General and administrative costs 19,000 95,000 $ 95,000 Contribution margin Fixed costs: 50,700 Marketing costs General and administrative costs 27,300 78,000 $ 17,000 Operating income