Requirement 3. Use the coffee shop's operating leverage factor (using the December contribution margin income statement) to determine its new operating income sales volume increases 12% Prove your results using the contribution margin income statement format Assume that sales mix remains unchanged Identity the formula to compute the operating leverage factor Contribution margin Operating income Operating leverage factor (Round your answer to two decimal places) Awesome Cotto's operating leverage factoris Data Table - X bution margir 10,500 sa ibution margi te cell.) s with a $0 balance $ 82,000 $ es Awesome Coffee Contribution Margin Income Statement Month Ended December 31 Sales revenue Less variable expenses: Cost of goods sold $ 22,000 Marketing expense 14,000 General and administrative expense 5,000 Contribution margin Less fixed expenses. Marketing expense 16,800 4,200 General and administrative expense 41,000 41,000 e the coffee impute the ma 21,000 20,000 Operating income dollars is S Print Done coffee shop' Determine its new 12%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchange The contribution margin income statement of Awesome Colice for December follows: Click the icon to view the contribution margin income statement) Awesome Coffee sells three small coffees for every large cottee. A small coffee sells for $2.00, with a variable expense of $1.00. A large coffee sells for $6.00, with a variable expense of $300 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) Fored expenses - Operating income ) Weighed-avg CM per unit Breakeven sales in units Now calculate the weighted average contribution margin per unit (Round the weighted average contribution margin por unit to the nearest cont) Small Total Sales price per unit Less: Variable expense per unit Contribution margin per unit Sales mix in units 2.00 $ (1.00) 1.00 S Large 6.00 (3.00) 300 $ 3.00 $ 300 $ Contribution margin Weighted average contribution margin per unit The breakeven point is 10,500 small cups and 3.500 ege cup of coffee Prepare a summary contribution margin income statement to prove your answer above (Complete all answer boxes For amounts with a so balance, make sure to enter"0in the appropriate cell) Small Large Sales revenue Less Variable expenses 21,000S (10 500 21.000 $ (10.500) 42,000 (21.000) $ 10.500 5 10.500 Contribution margin Loss Fixed expenses 21,000 (21000) 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 Bronkoven sales in dollars Sales Margin of safety in dollars The margin of safety in dollars is $ 40,000