P7-66A (similar to) 0 Question Help - Data Table X The contribution margin income statement of Krazy Kup Coffee for December follows: B (Click the icon to view the conte Krazy Kup Coffee sells three small 0 Requirements Read the requirements Begin by identifying the formula to 106,000 Fixed expOnSUS Now calculate the weighted average ant) 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 slalernontal the broakuvon level of sales. Show only two calegories of expenses. variable and fixed 2. Compute the coffee shop's margin of safety in dollars 3. Use the coffee shop's operating coverage factor (using the December contribution margin income statement) to determine its new operating income if sales volume increases 10% Prove your results using the contribution margin income statement format. Assume that sales mix romains unchanged Krazy Kup Coffee Contribution Margin Income Statement Month Ended December 31 Sales revenue $ Less variable expenses Cost of goods sold $ 34,90 Marketing expense 15,000 General and aiministrative cxxis 4,500 Contribution margin $ Less fixed expenses: Markeling expenso $ 24,000 General and administrative expansa 6.000 $ Operating income 54,000 54,000 Sales price per unit Less. Variable expense per unit Contribution margin per unit Sales mix in units Print Contribution margin Done 30.000 240DD Weighted average contribution margipe The breakeven point is small cups and Large cups of coffee Print Done Enter any number in the edit fields and then click Check Answer 7 parts remaining Clear All Check Answer P7-66A (similar to) i Dala Table - X stion Help The contribution margin income statement of Krazy Kup Coffee for December follows: (Click the icon to view the contribution margin income statement) Krazy Kup Coffee sells three small coffees for every large coffee. A smal coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for Read the requirements Begin by identifying the formula to compute the total breakeven point in unils. (Abbreviations used: avg. = Average, CM = Contribution margin.) 108000 Fixed expenses + Operating income )! Weighed-avg CM per unit = Hreakeven sales in units Now calculate the weighted average contribution margin per unit. (Round the weighted average contribution margin per unit to the nearest cent) Total Krazy Kup Coffee Contribution Margin Income Statement Month Ended December 31 Sales revenue $ Less variable expenses Cost of goods sold $ 34,500 Marketing expense 15,000 4 500 General and administrative expense Contribution margin $ Less fixed expenses Marketing expense $ 24,000 6.100 Ceneral and administrative expense $ Operating income 5400X Sales price per unit Small Large 2.00 $ 4.00 (1.00) (2.00) 1.00 $ 2.00 $ 54,000 Iess Variable expense per unit Contribution margin per unit $ Sales inix in units Contribution margin $ 3.00 $ 2.00 $ $ 5.00 1.25 30.000 24,000 Weighted average contribution margin per unit The breakeven point is small cups and large cups of coffee Print Done Enter any number in the edit fields and then click Check Answer 7 parts remaining Clear All Check
