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The contribution margin income statement of First Choice Cotfee for August follows: Fift (Click the icon to view the contribution margin income statement) First Choice

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The contribution margin income statement of First Choice Cotfee for August follows: Fift (Click the icon to view the contribution margin income statement) First Choice Collee solls three small cotlees for every large colfice. A small cotee sells for $3.00, with a variatlo expense of $1.50. A largo coffee sels for $5.00, with a variable expense of $2.50. $2.50. Read the tequirements Requirement 1. Deterrine the colfee shop's monthly breakeven point in the numbers of small cottoes and large colfees. Prove your answer by preparing a summary contribution margin income statement of the breakeven level of sales. Show only two categories of expenses: variable and fred. Begin by identifying the formula to compute the total beakeven point in units. (Abbreviabons used awp. Average; CM = Contribution margin.) Now cakculace the weighed-average contribution margin per unit. (Round the weighted-average contribution magyn per unit to the nearest cent.) The breakerven point is smat cups and large cups of coffee. Requirement 2 Compute the coffee shop's margin of safety in dollars. Identify the formuie to compule the margin of safety in dollars. - Margin of safety in dollars The margin of salety in dotiars is Requirement 3. Use the cotiee shop's operating leverage factor (using the August contribution margin income statement) to determine its new operating income if sales votume inereases 11%. Prove your results using the contribution margin income statement format. Assume that salos max remains unchanged. Wentify the formula to cocnpule the operating leverage factor. = Operating leverage tactor (Round your answer to two decimal places.) First Choice Cotlee's operating leverage factor is If First Choice Coffee can increase sales revenue by 11%, koeping the sabos mix the same, operating income will be Prepare a summary contribution margin income statement to prove your answer above. (For amounts with a so balance, make sure to enter "o" in the appropriate input field) Data table

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