Question Help o LO Data Table 1 2 The contribution margin income state Click the loon to view the contri Extreme Coto sells the small com variable expense of $2.00 Read the requirements ge coffee sets for $4.00, with a B ir answer by preparing a summary Requirement 1. Determine the colle contribution margin income statemed Begin by identifying the formula tog Food expenses 60,000 Jon margin.) Now calculate the weighted average harestent 1 Extreme Coffee 2 Contribution Margin Income Statement Month Ended August 31 4 Sales revenue S 5 Less variable expenses 6 Cost of goods sold $ 17.000 7 Marketing expense 9.000 8 General and administrative expense 4000 9 Contribution margin 5 10 Less fed expenses. 11 Marketing expense S 12.000 12 General and administrative experte 3.000 S 13. Operating income 30,000 30,000 Soles price per unit Less Variable expense per unit Contribution margin per unit Sales mix in units Contribution margin 15.000 15,000 Winter Choose from any list or enter any Print Done ? The contribution margin income statement of Extreme Coffee for August follows Click the icon to view the contribution margin income statement.) Extreme Caffes sells three small coffees for every large coffee. A small coffee sels for $2.00, with a variable expense of 51.00. 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 lounts (Abbreviations cond: wvg Average CM - Contbution margin Fixed expenses Operating income Contribution marpin ratio Brookoven soles in unta Now calculate the weighted average contribution margin per unit. (Round the weights-average contribution margin per unit to the nearest cet) Small Large Total Sales priceperunt Variable expenso per unit 10 Contribution margin per unit Sales mix in units Contribution margin 2 4 Loss 12 2 1 3 1 3 2 5 1.25 Weinhorne niistinn mann narini The breakeven point is small cups and largo cups of coffee Propare a summary contribution margin income statement to prove your answer above (Complete all input fields. For amounts with a 30 balance, make sure to enter *o' in the appropriate input field Small Large Total Sales revenue Loss: Variable expenses Contribution margin Less: Fixed expenses Operating income Requirement 2. Compute the coffee shop's margin of safety in dollars Identify the formule to computo the margin of safety in dollar The contribution margin income statement of Extreme Coffee for August follows Click the loon to view the contribution margin income statement) Extreme Coffee Bells the small coffeen for every large coffee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sols for $4.00, with a variable expense of $200 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. Breakeven sales in dollars Sales Margin of safety in dollars The margin of bufety in dollars is Requirement 3. Use the coffee shop's operating loverage factor (using the August 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 Identify the formula to compute the operating leverage factor Contribution margin Operating income Operating leverage factor (Round your answer to two decimal places) Extreme Coffee's operating leverage factor is The contribution margin income statement of Extreme Coffee for August follows: BB Click the icon to view the contribution margin income statement) Extreme Coffoo 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 If Extreme Coffee can increase sales revenue by 15% keeping the sales mix the same, operating Income will be Preparo a summary contribution margin income statement to prove your answer above. (For amounts with a 50 balance, make sure to enter to in the appropriate Input field.) Extreme Coffee Effect on Operating Income of 15% Increase in Sales Volume Current level Parcont increase Dollar increase Sales revenue 15% Less: Variable expenses 15% Contribution margin Change in fixed expenses Operating income before sales increase narating in marele
