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Need help finding the margin of safety in dollars ... The contribution margin income statement of Cosmic Coffee for July follows: (Click the icon to
Need help finding the margin of safety in dollars ...
The contribution margin income statement of Cosmic Coffee for July follows: (Click the icon to view the contribution margin income statement.) Cosmic 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. Data table - X PER OD TIIA Illini Contribution margin $ 4.50 $ 7.00 2.50 $ Cosmic Coffee Contribution Margin Income Statement Month Ended July 31 S 1.75 Weighted-average contribution margin per unit The breakeven point is 18,000 small cups and 6,000 large cups of coffee. $ 164,000 Prepare a summary contribution margin income statement to prove your answer above. (Complete all answer boxes. For amd Large $ 75,000 Total Sales revenue Small 54,000 $ (27,000) 30,000 $ (15,000) 82,000 6,000 1,000 Sales revenue Less variable expenses: Cost of goods sold Marketing expense General and administrative expense Contribution margin Less fixed expenses: Marketing expense General and administrative expense 84,000 (42,000) $ 82,000 $ 27.000 $ 15,000 42,000 Less: Variable expenses Contribution margin Less: Fixed expenses Operating income (42,000) $ 33,600 $ $ 0 8,400 42,000 $ 40,000 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. Sales Breakeven sales in dollars Margin of safety in dollars Print Done The margin of safety in dollars is $Step by Step Solution
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