Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. help out requirements 1. calculate the weig

help out Requirements 1. Calculate the weighted-average contribution...

70.2K

Verified Solution

Question

Accounting

help out
image
image
image
Requirements 1. Calculate the weighted-average contribution margin. 2. 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. 3. Compute Sweet Pea's margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Sweet Pea 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.) Data table Sweet Pea sells two dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $3.00, with total variable cost of $1.35 per dozen. A dozen custard-filled donuts sells for $6.00, with total variable cost of $2.70 per dozen. Read the requirements

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students