A pastry shop with fixed costs of $4, 125 per month sells coffee and donuts. The shop sells 2 cups of coffee for every 1 donut. The following information is available for monthly operations: Coffee Donuts Unit Sales Price $4.00 $2.50 Unit Variable Cost Coffee $1.00 $0.25 How many cups of coffee and donuts must be sold every month to break even? 500 cups of coffee and 500 donuts 1, 500 1,000 cups of coffee and 500 donuts 1, 600 The degree of operating leverage is equal to the volume of revenue needed to break even equal to the ratio of total variable costs to total revenues equal to the contribution margin divided by profit only important when the organization is very profitable