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Calculate the weighted-average contribution margin. Determine Sugar Donuts' monthly breakeven point in dozens of plain donuts and custard-filled donuts. Compute Sugar Donuts' margin of safety in dollars for August 2024. Compute the degree of operating leverage for Sugar 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 Arume the col

Calculate the weighted-average contribution margin. Determine Sugar Donuts' monthly breakeven point in dozens of plain donuts and custard-filled donuts. Compute Sugar Donuts' margin of safety in dollars for August 2024. Compute the degree of operating leverage for Sugar 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 Arume the col

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please respond to my question using an excel worksheet as I’m trying to learn how to use excel.
Net Sales Revenue Variable Costs: Cost of Goods Sold Selling Costs Administrative Costs Contribution Margin Fixed Costs: Selling Costs Administrative Costs Operating Income SUGAR DONUTS Contribution Margin Income Statement Month Ended August 31, 2024 $32,100 17,400 6,750 24,750 8,250 $125,000 56,250 68,750 000 $ 35,750 Sugar Donuts sells three dozen plain donuts for every dozen custard-filled donut. A dozen plain donuts sell for $4.00, with a total variable cost of $1.80 per dozen. A dozen custard-filled donuts sells for $8.00, with a total variable cost of $3.60 per dozen. Requirements: *Create an excel sheet for each requirement in the project within one excel document. OR *Create a word document and label each section with the requirement number in the project. 1. Calculate the weighted-average contribution margin. 2. Determine Sugar Donuts' monthly breakeven point in dozens of plain donuts and custard-filled donuts. 3. Compute Sugar Donuts' margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Sugar 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.)
Transcribed Image Text:Net Sales Revenue Variable Costs: Cost of Goods Sold Selling Costs Administrative Costs Contribution Margin Fixed Costs: Selling Costs Administrative Costs Operating Income SUGAR DONUTS Contribution Margin Income Statement Month Ended August 31, 2024 $32,100 17,400 6,750 24,750 8,250 $125,000 56,250 68,750 000 $ 35,750 Sugar Donuts sells three dozen plain donuts for every dozen custard-filled donut. A dozen plain donuts sell for $4.00, with a total variable cost of $1.80 per dozen. A dozen custard-filled donuts sells for $8.00, with a total variable cost of $3.60 per dozen. Requirements: *Create an excel sheet for each requirement in the project within one excel document. OR *Create a word document and label each section with the requirement number in the project. 1. Calculate the weighted-average contribution margin. 2. Determine Sugar Donuts' monthly breakeven point in dozens of plain donuts and custard-filled donuts. 3. Compute Sugar Donuts' margin of safety in dollars for August 2024. 4. Compute the degree of operating leverage for Sugar 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.)
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