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.) 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 Total Less: Weighted-average contribution margin per unit The breakeven point is small cups and large cups of coffee. Requirement 3. Use the coffee shop's operating leverage factor (using the May contribution margin income statement) to determine its new operating income if sales volume increases 12%. 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.) Krazy Kup Coffee's operating leverage factor is If Krazy Kup Coffee can increase sales revenue by 12%, 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 $0 balance, make sure to enter "0" in the appropriate cell.) Krazy Kup Coffee Effect on Operating Income of 12% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 12% 12% Less: Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Prepare a summary contribution margin income statement to prove your answer above. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Krazy Kup Coffee Effect on Operating Income of 12% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 12% 12% Less: Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase