Score: 17.74 of 20 pts 5 of 5 (5 complete) HW Score: 97. WP20-41A (similar to) The contribution margin income statement of Creative Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Creative sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donu total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $7.00, with total va dozen. Read the requireme i Data Table Lonibution margin JU, 12V 33,120 Fixed Costs Operating Income Creative Donuts Requirement 3. Compute Creative's margin of safety in dollars for August 2018. (The contribution margin income statement provided should be Expected sales in dollars $ 130,000 . Breakeven sales in dollars - $ 55,200 = Margin of safety in dollars = $ 74,800 Requirement 4. Compute the degree of operating leverage for Creative Donuts. Estimate the new operating income if total sales increase by 1 nearest dollar. Assume the sales mix remains unchanged.) Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 130,000 Variable Costs: Cost of Goods Sold $ 32,600 Selling Costs 17,200 Administrative Costs 52,000 Contribution Margin 78,000 Fixed Costs: Selling Costs 24,840 8,280 33,120 Administrative Costs $ 44,880 Operating Income Begin by computing the degree of operating leverage for Creative Donuts. (Round the degree of operating leverage to four decimal places, XX Contribution margin Operating income Degree of operating leverage $ 78,000 / $ 44,880 1.7380 2,200 Estimate the new operating income if total sales increase by 10%. (Round interim calculations to four decimal places and your final answer to th The estimated operating income will be $ . Enter any number in the edit fields and then click Check Answer. part remaining Clear All Print Done Score: 17.74 of 20 pts 5 of 5 (5 complete) HW Score: 97. WP20-41A (similar to) The contribution margin income statement of Creative Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Creative sells four dozen plain donuts for every dozen custard-filled donuts. A dozen plain donu total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $7.00, with total va dozen. Read the requireme i Data Table Lonibution margin JU, 12V 33,120 Fixed Costs Operating Income Creative Donuts Requirement 3. Compute Creative's margin of safety in dollars for August 2018. (The contribution margin income statement provided should be Expected sales in dollars $ 130,000 . Breakeven sales in dollars - $ 55,200 = Margin of safety in dollars = $ 74,800 Requirement 4. Compute the degree of operating leverage for Creative Donuts. Estimate the new operating income if total sales increase by 1 nearest dollar. Assume the sales mix remains unchanged.) Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 130,000 Variable Costs: Cost of Goods Sold $ 32,600 Selling Costs 17,200 Administrative Costs 52,000 Contribution Margin 78,000 Fixed Costs: Selling Costs 24,840 8,280 33,120 Administrative Costs $ 44,880 Operating Income Begin by computing the degree of operating leverage for Creative Donuts. (Round the degree of operating leverage to four decimal places, XX Contribution margin Operating income Degree of operating leverage $ 78,000 / $ 44,880 1.7380 2,200 Estimate the new operating income if total sales increase by 10%. (Round interim calculations to four decimal places and your final answer to th The estimated operating income will be $ . Enter any number in the edit fields and then click Check Answer. part remaining Clear All Print Done