I took pictures of the question and then took picture of the drop downs for what options you can pick from.
llows 1 Data Table Extreme Coffee Contribution Margin Income Statement Month Ended December 31 $ 108,000 Sales revenue Less variable expenses: he Cost of goods sold Marketing expense General and administrative expense S 42,000 9,000 3,000 54,000 S 54,000 Contribution margin Less fixed expenses: $25,500 4,500 Marketing expense 30,000 General and administrative expense S24,000 cups o Operating income ur ansv O" in th Print Done To then continue to the next question. i Requirements 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. 2. Compute the coffee shop's margin of safety in dollars. 3. Use the coffee shop's operating leverage factor (using the December contribution margin income statement) to determine its new operating income if sales volume increases 15%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged. Print Done EEE (Click the lcon to view the contribution margin income statement.) Extreme Coffee sells three small coffes for every large coffoe. A small coffee sells for $2.00, with a variable expense of $1.00.A large ooffee sells for $4.00, with a variable expense of $2.00 only two categories of expenses: variable and fixed N Total Units sold small coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show ons used: avg-Average; CM Contribution margin.) Breakeven sales in units Sales Read the Large Total Less: Total 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 S Margin of sales in dollars at sales mix remains unchanged Requirement 3. Use the coffee shop's operating leverage factor (using the December contribution margin income statement) to determine its new ncome statement format. Assume that sales mix remains unchanged. ntribution man n income statement to determine its now operating income i sales volume increases 15%. Prove your results using the contribution margin Requirement 3. Use the coffee shop's operating leverage factor (using the December contribution margin incor income statement format. Assume that sales mix remains unchanged. ldentily he fomul to compute the cperating leverage facter Operating leverage factor (Round your answer to two decimal places.) Extreme Coffee's operating leverage factor is If Extreme Coffee can increase sales revenue by 15%, keeping the sales mix the same, operating income will be $ Requirement 3. Use the coffee shop's operating leverage factor (using the December contribution marg income statement format. Assume that sales mix remains unchanged. Identify the formula to compute the operating leverage factor -Operating leverage factor (Rou Contribution margin Fixed costs Operating income places.) je factor is es revenue by 15%, keeping the sales mix the same, operating income If Ex Total costs willl Total revenues Prepumung wrginincome statement to prove your answer above. (For amounts with Variable costs Change in fxed expenses