Olss *| a search, E5-15 Predicting How Sustainability Initiatives will impact the Contribution Margin Income Statement(LO 5-sj Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay anextra$100for the reusable cup and would receive a 20% dscount each time they return with the eup to buy aap ofcoee Each week Starcups serves 48,000 customers who purchase an average of 2.50 cups of coffee per week (120,000 cups total) Starcups's contribution mangin income statement for a typical week is shown below Sales Revenue Variable Cost Fxed Costs Net Operating Income 20,000 $5.60 $672.000 120,000 230 276,000 20,000 $3.30 $396,000 108,000 $288,000 Assume the new ap promotion is expected to impact sales voire. roveruefixed, and variatie costs as folows: . Staroups estmates that 25% of its current customers (12000) will parterale in the prom con. The ,emander of its ent gaatorer ble (sooo we armet buy an e Starcups expected to attract 5,800 new customers to participate in the promotion * The addtional variable cost of purchasing the reusablop is $2.30. The variable oost savings of the paper is $ 30 average of 2 50 cups of coffee per weok additional $100 for the reusatie op They will then receive a 20% dscount on repeat visits wher"sy bring back Customers who participate in the promotion will pay an their rousable cup Starcups expects that customers who participate in the reusable oup Starcups will spend a total of $18,000 per week advertising the reusable cup promotion promotion will visit an average of 3 smes per week, including the first purchase of the reusable cup 1. Prepare a contribution margin income statement to predict how the reusable cup promotion weill impact weokly net operating income PyDn 6 2