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The contribution margin income statement of Cosmic Coffee for May follows Click the icon to view the contribution margin income statement.) Cosmic Coffee sells
The contribution margin income statement of Cosmic Coffee for May follows Click the icon to view the contribution margin income statement.) Cosmic Coffee sells three small coffees for every large coffee. A small coffee sels 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 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 canibution margin income statement at the breakeven level of sales Show only two categories of expenses variable and fixed Begin by identifying the formule so compute the total breakeven point in unts (Abbreviations used ag Average: CM Contribution margin Requirements Calcu 1. Determine the coffee shop's menthly breakeven porn in the numbers of smal coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales, Show only two calegones of expenses: vantable and d 2. Compute the coffee shop's margin of safety in dollars 3. Use the coffee shop's operating leverage factor (using the May contribution margin income statement to determine its new operating income sales volume increases 15%. Prove your results using the contribution margin income statement format. Assume that sales mix remain unchanged Print Done Breakeven sales in units Data table Cosmic Coffee Contribution Margin Income Statement Month Ended May 21 100.000 Less variable expenses Cost of goods sold $ 37,000 Marketing expense 9,000 Genes and administrative expense 4,000 50.000 Corbution margin $ 50,000 Marketing expe 20,000 General and admitive exper 6.000 25,000 25.000 Operating income
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