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20-41A (similar to) Question Help The contribution margin income statement of Cosmic Donuts for August 2018 ollows: Cosmic 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 (Click the icon to view the contribution margin income statement) Read the requirements. Requirement 1. Calculate the weighted-average contribution margin. (Round all currency amounts to the nearest cent i Plain Filled Total Data Table - X Requirements Cosmic Donuts Contribution Margin Income Statement Month Ended August 31, 2018 1. Calculate the weighted-average contribution margin. 2. Determine Cosmic'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 Cosmic's margin of safety in dollars for August 2018 4. Compute the degree of operating leverage for Cosmic 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) Net Sales Revenue S 128,000 Variable Costs Cost of Goods Sold S 32,100 Selling Costs 17,600 1,500 51,200 Administrative Costs Contribution Margin 76,800 Fixed Costs: Selling Costs 37,800 12,600 50.400 Administrative Costs 26,400 Operating Income Print Done

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