Calculating breakeven point for two products, margin of safety, and operating leverage The contribution margin income statement of Delectable Donuts for August 2020 follows: DELECTABLE DONUTS Contribution Margin Income Statement Month Ended August 31,2020 Sales Revenue $ 150,000 Variable Costs: Cost of Goods Sold $ 41,000 Selling Costs 15,000 Administrative Costs 4,000 60,000 Contribution Margin 90,000 Fixed Costs: Selling Costs 37,800 Administrative Costs 12,600 50,400 Operating Income $ 39,600 Delectable 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 $5.00, with total variable cost of $2.00 per dozen. Requirements

Calculating breakeven point for two products, margin of safety, and operating leverage The contribution margin income statement of Delectable Donuts for August 2020 follows: DELECTABLE DONUTS Contribution Margin Income Statement Month Ended August 31,2020 Sales Revenue $ 150,000 Variable Costs: Cost of Goods Sold $ 41,000 Selling Costs 15,000 Administrative Costs 4,000 60,000 Contribution Margin 90,000 Fixed Costs: Selling Costs 37,800 Administrative Costs 12,600 50,400 Operating Income $ 39,600 Delectable 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 $5.00, with total variable cost of $2.00 per dozen. Requirements

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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