(Click the icon to view the contribution margin income statement) dozen custard-filed donuts sells for $8.00, with total variable cost of $3.20 per dozen. Read the pesuicements Sales price per unit 4.00 S 8.00 Variable cost per unit 1.60 3.20 Contribution margin per unit 2.40 4.80 * Sales mix in units 1 Contribution margin 12.00 S 4.80 S 16.80 Weighted-average contribution margin per unit 280 Requirement 2. Determine Krazy Cream'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. We'll begin with the breakeven point. Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products-total dozens of donuts to be sold. (Complete all input fields. Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used Weighted-avg. CM = weighted-average contribution margin.) Fixed costs Target profit )- Weighted-avg. CM per unit Required sales in units 50,400 2.80 18,000 Determine Krazy Cream's monthly breakeven point in dozens of plain donuts a O Data Table - X The breakeven point is 15,000 dozen plain donuts and 3,000 do Prove your answer by preparing a summary contribution margin income staten ariable and fixed. (Enter a "0" for any zero balances.) Krazy Cream Donuts Krazy Cream Donuts Contribution Margin Income Statement Contribution Margin Income Statement Month Ended August 31, 2018 Plain Filled Total Net Sales Revenue $ 127,000 Net Sales Revenue Variable Costs Variable Costs Cost of Goods Sold 32,400 Contribution Margin Selling Costs 17,400 Fixed Costs Administrative Costs 1,000 50,800 Operating Income Contribution Margin 76,200 Fixed Costs nter any number in the edit flelds and then click Check Answer. Selling Costs 37,800 12,600 50,400 Administrative Costs parts femaining Clear All Check Answer 25,800 Operating Income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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. ​(Enter a​ "0" for any zero​ balances.)
The contribution margin income statement of Krazy Cream Donuts for August 2018 follows:
Krazy Cream 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
E (Click the icon to view the contribution margin income statement.)
dozen custard-filled donuts sells for $8.00, with total variable cost of $3.20 per dozen.
Read the requirements
Sales price per unit
$
4.00 $
8.00
Variable cost per unit
1.60
3.20
Contribution margin per unit
2.40
4.80
Sales mix in units
6
$
12.00 $
4.80 $
16.80
Contribution margin
2.80
Weighted-average contribution margin per unit
Requirement 2. Determine Krazy Cream'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.
We'll begin with the breakeven point. Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products-total dozens of donuts to be sold. (Complete all input fields. Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used:
Weighted-avg. CM = weighted-average contribution margin.)
Fixed costs
Target profit
)- Weighted-avg. CM per unit
= Required sales in units
50,400
2.80
18,000
Determine Krazy Cream's monthly breakeven point in dozens of plain donuts a
Data Table
- X
The breakeven point is
15,000 dozen plain donuts and
3,000 do
Prove your answer by preparing a summary contribution margin income staten
lariable and fixed. (Enter a "0" for any zero balances.)
Krazy Cream Donuts
Krazy Cream Donuts
Contribution Margin Income Statement
Contribution Margin Income Statement
Month Ended August 31, 2018
Plain
Filled
Total
Net Sales Revenue
$
127,000
Net Sales Revenue
Variable Costs:
Variable Costs
Cost of Goods Sold
$
32,400
Contribution Margin
Selling Costs
17,400
Fixed Costs
1,000
50,800
Administrative Costs
Operating Income
Contribution Margin
76,200
Fixed Costs:
Enter any number in the edit fields and then click Check Answer.
Selling Costs
37,800
12,600
50,400
Administrative Costs
parts
remaining
Clear All
Check Answer
25,800
Operating Income
Transcribed Image Text:The contribution margin income statement of Krazy Cream Donuts for August 2018 follows: Krazy Cream 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 E (Click the icon to view the contribution margin income statement.) dozen custard-filled donuts sells for $8.00, with total variable cost of $3.20 per dozen. Read the requirements Sales price per unit $ 4.00 $ 8.00 Variable cost per unit 1.60 3.20 Contribution margin per unit 2.40 4.80 Sales mix in units 6 $ 12.00 $ 4.80 $ 16.80 Contribution margin 2.80 Weighted-average contribution margin per unit Requirement 2. Determine Krazy Cream'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. We'll begin with the breakeven point. Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products-total dozens of donuts to be sold. (Complete all input fields. Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Fixed costs Target profit )- Weighted-avg. CM per unit = Required sales in units 50,400 2.80 18,000 Determine Krazy Cream's monthly breakeven point in dozens of plain donuts a Data Table - X The breakeven point is 15,000 dozen plain donuts and 3,000 do Prove your answer by preparing a summary contribution margin income staten lariable and fixed. (Enter a "0" for any zero balances.) Krazy Cream Donuts Krazy Cream Donuts Contribution Margin Income Statement Contribution Margin Income Statement Month Ended August 31, 2018 Plain Filled Total Net Sales Revenue $ 127,000 Net Sales Revenue Variable Costs: Variable Costs Cost of Goods Sold $ 32,400 Contribution Margin Selling Costs 17,400 Fixed Costs 1,000 50,800 Administrative Costs Operating Income Contribution Margin 76,200 Fixed Costs: Enter any number in the edit fields and then click Check Answer. Selling Costs 37,800 12,600 50,400 Administrative Costs parts remaining Clear All Check Answer 25,800 Operating Income
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