The contribution margin income statement of Cosmic Coffee for July follows: B Click the icon to view the contribution margin income statement.) Cosmic 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 C... 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 ) = 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 Less: Variable expense per unit Contribution margin per unit Weighted average contribution margin per unit The contribution margin income statement of Cosmic Coffee for July follows: (Click the icon to view the contribution margin income statement.) Cosmic 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. 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 "0" 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 Requirement 3. Use the coffee shop's operating leverage factor (using the July contribution margin income statement) to determine its new operating income if sales volume increases 11%. 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.) Cosmic Coffee's operating leverage factor is If Cosmic Coffee can increase sales revenue by 11%, 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 50 balance, make sure to enter "0" in the appropriate input field.) 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.) Cosmic Coffee Effect on Operating Income of 11% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 11% 11% Less: Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase The contribution margin income statement of Cosmic Coffee for July follows: (Click the icon to view the contribution margin income statement.) Cosmic Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a v Read the requirements Data table COSTTTTC Coree 2 3 Contribution Margin Income Statement Month Ended July 31 Requirement 1. Determine the coffee shop's monthly breakeven point in the numbers of small coffe 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: ( Fixed expenses Operating income ) = Weighed-avg. CM per unit 4 Sales revenue $ 95,000 S 28,500 Now calculate the weighted-average contribution margin per unit. (Round the weighted average cont 14.000 Small Large Total 5,000 47.500 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 $ 47,500 Sales price per unit Less: Variable expense per unit Contribution margin per unit S 18,000 22,500 4,500 $ 25,000 13 Operating income Weighted average contribution margin per unit The contribution margin income statement of Cosmic Coffee for July follows: B Click the icon to view the contribution margin income statement.) Cosmic 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 C... 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 ) = 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 Less: Variable expense per unit Contribution margin per unit Weighted average contribution margin per unit The contribution margin income statement of Cosmic Coffee for July follows: (Click the icon to view the contribution margin income statement.) Cosmic 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. 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 "0" 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 Requirement 3. Use the coffee shop's operating leverage factor (using the July contribution margin income statement) to determine its new operating income if sales volume increases 11%. 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.) Cosmic Coffee's operating leverage factor is If Cosmic Coffee can increase sales revenue by 11%, 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 50 balance, make sure to enter "0" in the appropriate input field.) 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.) Cosmic Coffee Effect on Operating Income of 11% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 11% 11% Less: Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase The contribution margin income statement of Cosmic Coffee for July follows: (Click the icon to view the contribution margin income statement.) Cosmic Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a v Read the requirements Data table COSTTTTC Coree 2 3 Contribution Margin Income Statement Month Ended July 31 Requirement 1. Determine the coffee shop's monthly breakeven point in the numbers of small coffe 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: ( Fixed expenses Operating income ) = Weighed-avg. CM per unit 4 Sales revenue $ 95,000 S 28,500 Now calculate the weighted-average contribution margin per unit. (Round the weighted average cont 14.000 Small Large Total 5,000 47.500 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 $ 47,500 Sales price per unit Less: Variable expense per unit Contribution margin per unit S 18,000 22,500 4,500 $ 25,000 13 Operating income Weighted average contribution margin per unit