Question

The contribution margin income statement of Krazy Cream Donuts for August 2018 Click the loon love the contribution margin income Matement) Gestion Help Krary Creams four de la donuts for every co r ded on A dan with total variable cost of $10 per dore Adenunded donde se for th per dozen e cost 120 Head the rourement Requirement 1. Calculate the weighted average contribution margin (Round all currency amounts to the nearest cant) Plain Filled Total 1 Requirements Contribution margin Weighted average contribution margin perunt 1. Calculate the weighted average contribution margin 2. Determine Krazy Crear's monthly breakeven point in d en of pain donuts and custard-Gled donuts Prove your answer by preparing a sua contribution margin income i nto the breskeve level of wes Show only two categories of co wariable and fed 3. Computekrary Cream' margin of s y in dollars for August 2018 4. Compute the degree of operating leverage for Krary Cream Donuts Estimate the new operating income for sales increase by on Hound the gree of operating leverage to four decimal places and the finanswer to me nearest dollar. Assume the sales mireman unchanged) 5. Prove your answer to Requirement by preparing a contribution margin income w ent with a 30% increase in total sales. The was m eans unchanged) Prom Done] Choose from any list or enter any number in the input fields and then click Check Answer Check Clear AB parts

Answer 1

	Plain	Filled	Total
Sales price per unit	$4.00	$8.00
- Variable cost per unit	$1.60	$3.20
Contribution margin per unit	$2.40	$4.80
x Sales mix in units	4	1	5 units
Contribution margin	$9.60	$4.80	$14.40
Weighted-average contribution margin per unit			$2.88
($14.40 per unit / 5 units)