Awesome Coffee Contribution Margin Income Statement For the Month Ended February 29 Sales revenue $ 90,000 Variable expenses: $ 32,000 Cost of goods sold Marketing expense 10,000 3,000 General and administrative expense 45,000 Contribution margin 45,000 Fixed expenses: Marketing expense General and administrative expense 16,500 3,500 20,000 $ 25,000 Operating income The contribution margin income statement of Awesome Coffee for February follows: E (Click the icon to view the contribution margin income statement.) Awesome Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for $4.00, with a variable expense of $2.00. Requirements 1. Determine Awesome Coffee's monthly break-even point in numbers of small coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the break-even level of sales. Show only two categories of expenses: variable an 2. Compute Awesome Coffee's margin of safety in dollars. 3. Use Awesome Coffee's operating leverage factor to determine its new operating income if sales volume increases 15%. Prove your results using the contribution margin income statement format. Assume the sales mix remains unchanged. Requirement 1. Determine Awesome Coffee's monthly break-even point in numbers of small coffees and large coffees. Begin by identifying the formula to compute the total break-even point in units. ( Fixed expenses + Operating income )/ Weighed-avg. CM per unit Break-even sales in units Now calculate the weighted-average contribution margin per unit. (Round the weighted-average contribution margin per unit to the nearest cent.) Small Large Total Less: Weighted average contribution margin per unit