i Data Table Unique Coffee $ 126,000 Contribution Margin Income Statement Month Ended January 31 Sales revenue Less variable expenses: Cost of goods sold 49,500 Marketing expense 11,000 General and administrative expense 2,500 Contribution margin Less fixed expenses: Marketing expense $ 23,800 General and administrative expense 4,200 63,000 $ 63,000 28,000 35,000 Operating income $ Print Done The contribution margin income statement of Unique Coffee for January follows: (Click the icon to view the contribution margin income statement.) Unique Coffee sells three small coffees for every large coffee. A small coffee sells for $3.00, with a variable expense of $1.50. A large coffee sells for $5.00, with a variable expense of $2.50. Read the requirements. Requirement 1. Determine the coffee shop's monthly breakeven point in the numbers of small coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show only two categories of expenses: variable and fixed. Begin by identifying the formula to compute the total breakeven point in units. (Abbreviations used: avg. = Average; CM = Contribution margin.) = Breakeven 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 The breakeven point is small cups and large cups of coffee. Prepare a summary contribution margin income statement to prove your answer above. (Complete all answer boxes. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Small Large Total Less: D- Less: Operating income Requirement 2. Compute the coffee shop's margin of safety in dollars. Identify the formula to compute the margin of safety in dollars. = Margin of safety in dollars The margin of safety in dollars is $ Requirement 3. Use the coffee shop's operating leverage factor (using the January contribution margin income statement) to determine its new operating income if sales volume increases 14%. Prove your results using the contribution margin income statement format Assume that sales mix remains unchanged. Identify the formula to compute the operating leverage factor. - Operating leverage factor (Round your answer to two decimal places.) Unique Coffee's operating leverage factor is If Unique Coffee can increase sales revenue by 14%, keeping the sales mix the same, operating income will be $ D . Prepare a summary contribution margin income statement to prove your answer above. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Unique Coffee Effect on Operating Income of 14% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 14% 14% Less: Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase