The contribution margin income statement of First Choice Coffee for Decemberfoto Click the icon to view the contribution mann.com Matement) First Choice Coffee as three smal coffees for every large cofee Asma coffee sets for 33.00 with a variable expense of 150 A large cost 1500 with a vare per Read the Game Requirement 1 Determine the coffee shops monthly breskoven point in the numbers of all cofres and large colliers Prove your new by regeringsmayerbution since went at the blood sales Show only two categories of expenses variable and feed Hoon by kanthing the formula no compute the total breakeven point in units. (Atbreviatione et ACM Combaton margin Now calculate the weighted average contribution margin per unit (Hound the weighted average ration margin per unit to the man Small Large Total Les Choose to strente any in the intercooled Guestion The contribution margin income statement of First Choice Coffee for December follows (Click the icon to view the contribution margin income statement First Choice Coffee sells the small coffees for every large coffee. A small coffee sells for $3.00 with a variable expense of $150 A large coffee sols for 55.00 with a variableciende of $250 Read the CD Weighted average contribution margin per un The breakeven points small cups and large cups of coffee Prepare a summary contribution margin income statement to prove your answer above (Complete all input folds. For amounts with a balance make sure to enter in the appropriate input fald) Small Large Total Los Operating income Requirement 2. Compute the coffee shop's margin of safety in dollars Identify the formula to compute the margin of safety in dotas Choose from any store any number in the input reds and then con to the next question The contribution margin income statement of First Choice Coffee for December follows Click the icon to view the contribution margin income statement First Choice Coffee sets the small coffees for every large coffee Asmalcool for $300, with a variable expense of $150 A large coffee sets for $5.00 with a variable expense of 2.50 Read the Cold Identify the formula to compute the margin of safety in dollars | Margin of sately in des The margin of safety in dollaris Requirement. Use the coffee shops operating leverage factor using the December contribution in comment to sew operating income lume ne 11 Prove your restige contribution margin income statement format Assume that sales mix remains unchanged Identify the formula to compute the operating leverage factor (Round your answer to two decisa com First Choice Cooperating leverage factoria Font Choice Coffee an internetyping the mix the same opening will be Choose from anyone in the routes and then continue the next question The contribution margin income statement of First Choice Coffee for December follows: (Click the icon to view the contribution margin income statement) First Choice Coffee sels three small coffees for every large coffee. A small coffee sells for $3.00 with a variable expense of $150 A large coffee sells for $500 with a variable expense of $250 Read the in First Choice Coffee can increase sales revenue by 11% kouping the sous mix the same operating income will be Prepare a summary contribution margin income statement to prove your answer above (For antents with a 50 balance, make sure to enter on the appropriate input fold) First Choice Coffee Effect on Operating income of 11% Increase in Sales Volume Current level Percent increase Dotar increase Sales revence 11 Less Variable expenses Contribution margin Change in foed expenses Operating Income before sales increase Operating Incomeater sales increase - X Data Table A B C 4 1 First Choice Coffee 2 Contribution Margin Income Statement Month Ended December 31 3 4 Sales revenue $ 164.000 S 5 Less variable expenses 16 Cost of goods sold 7 Marketing expense 8 General and administrative expense 64.000 14.000 OO 4.000 82.000 $ 82.000 9 Contribution margin 10 Less fixed expenses 11 Marketing expense 12 General and administrative expense S 33.600 8400 42.000 40.000 13 Operating income 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. 2. Compute the coffee shop's margin of safety in dollars. 3. Use the coffee shop's operating leverage factor (using the December 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
