The contribution margin income statement of Awesome Coffee for January follows: (Click the icon to view the contribution margin income statement.) Awesome 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 + Variable expenses ) = Weighed-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 Total Sales price per unit 2 4 1 2 Less: Variable expense per unit Contribution margin per unit 1 2 Sales mix in units 3 1 4 The contribution margin income statement of Awesome Coffee for January follows: B: (Click the icon to view the contribution margin income statement.) Awesome 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 Large Total Sales price per unit 2 4 1 2 Less: Variable expense per unit Contribution margin per unit 1 2 Sales mix in units 3 1 4 3 Contribution margin 5 1.25 Weighted average contribution margin per unit The breakeven point is 21000 small cups and 7000 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 "0" 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 Awesome Coffee for January follows: (Click the icon to view the contribution margin income statement.) Awesome 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 "0" in the appropriate input field.) Small Total Large 28000 Sales revenue 42000 70000 21000 Variable expenses Less: 14000 35000 Contribution margin 21000 14000 35000 Less: 35000 Fixed expenses 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. Sales Breakeven sales in dollars Margin of safety in dollars 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 Awesome Coffee for January follows: E (Click the icon to view the contribution margin income statement.) Awesome 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. Sales Breakeven sales in dollars Margin of safety in dollars The margin of safety in dollars is 56000 Requirement 3. Use the coffee shop's operating leverage factor (using the January 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. Contribution margin Operating income = Operating leverage factor (Round your answer to two decimal places.) 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 Awesome Coffee for January follows: (Click the icon to view the contribution margin income statement.) Awesome 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 3. Use the coffee shop's operating leverage factor (using the January 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. Contribution margin Operating income Operating leverage factor (Round your answer to two decimal places.) Awesome Coffee's operating leverage factor is 2.25 If Awesome Coffee can increase sales revenue by 10%, keeping the sales mix the same, operating income will be 34300 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 input field.) Awesome Coffee 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 Awesome Coffee for January follows: (Click the icon to view the contribution margin income statement.) Awesome 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. VIII DE TOUT 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 input field.) Awesome Coffee Effect on Operating Income of 10% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 126000 10% 138600 Less: Variable expenses 63000 10% 69300 69300 Contribution margin Change in fixed expenses 0 28000 Operating income before sales increase 34300 Operating income after sales increase 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 Awesome Coffee for January follows: (Click the icon to view the contribution margin income statement.) Awesome Coffee sells three small coffees for every large coffee. A small coffee sells fo - X Data Table pense of $2.00 Read the requirements A 56000 B The margin of safety in dollars is 1 Awesome Coffee e increases 10%. Prove your results using the contribution margin income Requirement 3. Use the coffee shop's operating leverage factor (using the January co statement format. Assume that sales mix remains unchanged. 2 Contribution Margin Income Statement 3 Month Ended January 31 Identify the formula to compute the operating leverage factor. Contribution margin Operating income 4 Sales revenue $ 126,000 Opera 5 Less variable expenses (Round your answer to two decimal places.) 6 Cost of goods sold $ 48,500 Awesome Coffee's operating leverage factor is 2.25 7 Marketing expense 13,000 8 General and administrative expense 1,500 63,000 If Awesome Coffee can increase sales revenue by 10%, keeping the sales mix the sal will be 34300 $ 63,000 9 Contribution margin 10 Less fixed expenses: Prepare a summary contribution margin income statement to prove your answer abov 11 Marketing expense $ 29,750 Awesome Coffee 12 General and administrative expense 5,250 35,000 Effect on Operating Income of 10% Increase in Sales Volume $ 28,000 13 Operating income Percent increase Dollail Current level 126000 Sales revenue 10% Print Done Choose from any list or enter any number in the input fields and then continue to the next