Question: 3 pts 1 of 9 (1 complete) This Quiz: 20 pts possible The contribution margin income statement of Bountiful Bean Coffee for December follows: (Click the icon to view the contribution margin income statement.) Bountiful Bean Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for $4.00, with a variable expense of $2.00. 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.) Fixed expenses + Operating income - Weighod-avg, CM per unit 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 Sales price per unit 4.00 Total 2.00 The contribution margin income statement of Bountiful Bean Coffee for December follows: (Click the icon to view the contribution margin income statement.) Bountiful Bean Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for $4.00, with a variable expense of $2.00 Read the requirements Now calculate the weighted average contribution margin per unit. (Round the weighted-average contribution margin per unit to the nearest cent.) Small Total 2.00 Largo 4.00 2.00 1.00 Sales price per unit Less: Variable expense per unit Contribution margin 1.00 200 Sales mix in units Sales price per unit 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 input fields. For amounts with a $0 balance, make sure to enter "o" in the appropriate input field.) Choose from any list or enter any number in the input fields and then continue to the next question. The contribution margin income statement of Bountiful Bean Coffee for December follows: (Click the icon to view the contribution margin income statement.) Bountiful Bean Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for $4.00, with a variable expense of $2.00. Read the requirements Prepare a summary contribution margin income statement to prove your answer above. (Complete all input fields. For amounts with a $0 balance, make sure to enter "o" in the appropriate input field.) Small Large Total Less 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 Choose from any list or enter any number in the input fields and then continue to the next question. ? The contribution margin income statement of Bountiful Bean Coffee for December follows: (Click the icon to view the contribution margin income statement.) Bountiful Bean Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for $4.00, with a variable expense of $2.00 Read the requirements 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 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 remains unchanged. Identify the formula to compute the operating leverage factor. Operating leverage factor (Round your answer to two decimal places.) Bountiful Bean Coffee's operating leverage factor is Choose from any list or enter any number in the input fields and then continue to the next question. & The contribution margin income statement of Bountiful Bean Coffee for December follows: 2 (Click the icon to view the contribution margin income statement.) Bountiful Bean Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for $4.00, with a variable expense of $2.00 Read the requirements of Bountiful Bean Coffee can increase sales revenue by 10%, keeping the sales mix the same, operating income will be Prepare a summary contribution margin income statement to prove your answer above. (For amounts with a so balance, make sure to enter "o" in the appropriate input field.) Bountiful Bean Coffee Effect on Operating Income of 10% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 10% Less: Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase 10% Choose from any list or enter any number in the input fields and then continue to the next question. X Data Table tion m e icon an Co e coff Je expense A B uirem Bountiful Bean Coffee N Contribution Margin Income Statement Month Ended December 31 3 balance, m ummar "0" $ 60,000 $ 19,000 Ef 4 Sales revenue 5 Less variable expenses: 6 Cost of goods sold 7 Marketing expense 8 General and administrative expense 9 Contribution margin 10 Less fixed expenses: 11 Marketing expense 12 General and administrative expense 8,000 3,000 30,000 nue $ 30,000 ariable on marg fixed ei $ 12,000 income 3,000 $ 15,000 15,000 income 13 Operating income om any Print Done NOV 15 margin income statement of Bountiful Bean Coffee for December follows: to view the contribution margin income statement.) offee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable fee sells for $4.00, with a variable expense of $2.00. * Requirements ar in Eff 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 10%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged. le e argi dex Print Done ome me after sales increase any list or enter any number in the input fields and then continue to the next