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The contribution margin income statement of Krazy Cream Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Krazy Cream sells four 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 $7.00, with total variable cost of $2.80 per dozen. Read the requirements Sales MIX MIT UITICS 9.60 $ 4.20 $ 13.80 Contribution margin $ 2.76 Weighted average contribution margin per unit Requirement 2. Determine Krazy Cream'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. 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 productstotal dozens of donuts to be sold. (Complete all answer boxes. Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Fixed costs Target profit )/ Weighted-avg. CM per unit = Required sales in units $ 33,120 0 2.76 12.000 Determine Krazy Cream's monthly breakeven point in dozens of plain donuts and custard-filled donuts. The breakeven point is 12000 dozen plain donuts and 3000 dozen custard-filled donuts Enter any number in the edit fields and then click Check Answer - X B Question Help C Data Table Krazy Cream sells four 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 $7.00, with total variable cost of $2.80 per dozen. Krazy Cream Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 130,000 Requirements Variable Costs: Cost of Goods Sold $ 32.100 is ar he statement at the breakeven level of Selling Costs 17,200 2.700 52.000 to used Administrative Costs Contribution Margin be sold. (Complete all answer boxes. 78,000 1. Calculate the weighted-average contribution margin. 2. Determine Krazy Cream'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 Krazy Cream's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Krazy Cream 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.) 5. 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.) per Fixed Costs: Selling Costs 24.840 8,280 Administrative Costs 33,120 edd $ 44,880 Operating Income ledd Print Done Print Done

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