Question

The contribution margin income statement of Unique Donuts for August 2018 follows: E: (Click the icon to view the contribution margin income statement.) Unique 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. Data Table Requirement 1. Calculate the weighted average contribution margir Plain x Requirements Sales price per unit $ 4.00 $ Variable cost per unit 1.60 Contribution margin per unit 2.40 х 4 Sales mix in units $ 9.60 Unique Donuts Contribution Margin Income Statement Month Ended August 31, 2018 Net Sales Revenue $ 130,000 Variable Costs: Cost of Goods Sold $ 32,700 Selling Costs 17,400 Administrative Costs 1,900 52,000 Contribution margin Weighted average contribution margin per unit 1. Calculate the weighted average contribution margin. 2. Determine Unique'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 Unique's margin of safety in dollars for August 2018. 4. Compute the degree of operating leverage for Unique 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.) Requirement 2. Determine Unique's monthly breakeven point in do costs: variable and fixed. paring a summary s of Contribution Margin 78,000 "package" of produ We'll begin with the breakeven point. Start by selecting the formula balances. Enter currency amounts to the nearest cent. Abbreviation Fixed Costs: Fixed costs Target profit Selling Costs 24,840 8,280 ($ 33,120 0 Administrative Costs 33,120 $ 44,880 Print Determine Unique's monthly breakeven point in dozens of plain don Operating Income Done Choose from any list or enter any number in the input fields and Print Dono
I need assistance with requirements 3,4 and 5, please.

Answer 1

	Sales	130,000
	Contribution	78,000
	PV Ratio	60.00%		Contribution/Sales
	Fixed Cost	33,120
	Operating Income	44,880
3	At BEP, Contribution = Fixed Cost
	Contribution	33,120
							`
	Sales	55,200		Contribution/PV Ratio
	BEP Sales	55,200
	Margin of Safety	74,800		Actual Sales - BEP Sales
4	New Operating Income
	Contribution Margin	101,400
	Less : Fixed Cost	33,120
	Operating Income	68,280
	Degree of Operating Leverage	1.4851		Contribution / Operating Income
5	Contribution Margin Income Statement
	Sales Revenue	169,000
	Less : Variable Cost
	Cost of Goods Sold	42,510
	Selling Cost	22,620
	Administrative Cost	2,470
		67,600
	Contribution Margin	101,400
	Less : Fixed Cost
	Selling Cost	24,840
	Administrative Cost	8,280
		33,120
	Operating Income	68,280
	Degree of Operating Leverage	1.4851		Contribution / Operating Income