Question

The contribution margin income statement of Krazy Kustard Donuts for August 2018 ​follows:

Krazy Kustard Donuts
Contribution Margin Income Statement
Month Ended August 31, 2018
Net Sales Revenue			$130,000
Variable Costs:
	Cost of Goods Sold	$32,400
	Selling Costs	17,400
	Administrative Costs	2,200	52,000
Contribution Margin			78,000
Fixed Costs:
	Selling Costs	36,450
	Administrative Costs	12,150	48,600
Operating Income			$29,400

Katzy sells five 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.

1.

Calculate the​ weighted-average contribution margin. Requirement 1. Calculate the​ weighted-average contribution margin.​ (Round all currency amounts to the nearest​ cent.) Plain Filled Total Sales price per unit 4 7 - Variable cost per unit 1.6 2.8 Contribution margin per unit 2.4 4.2 x Variable cost per unit 5 1 6 Contribution margin 2 0.7 2.7 Weighted-average contribution margin per unit 2.7

Answer 1