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The contribution margin income statement of First Cholos Cottee tor August tollows: (Click the icon to view the contribution margin income stetement.' Firs Choice Coffes
The contribution margin income statement of First Cholos Cottee tor August tollows: (Click the icon to view the contribution margin income stetement.' Firs Choice Coffes sels three small coffses for every largs coffee. A small coffee sells for $2,00, with a variatle expense of $1,00. A large coffee sels for $6,00, with a variable expense of S3,00, Read the recuirements. Requirement 1. Determine the cottee shop's monthily breskeven point in the numbers of small cottees snd large cottees. Frove your answer by prepering a summecy contibution margin income st variable and fixed. Begin by iblentifying the formula to ecmpute the toeal breakeven point in units, Abbreviations used: avg. = Average; CM = Contrution margin. i+ Data table Requirements 1. Determine the colee shop's manilly treakeven foint in the numbers of ernall coffees and large coffees. Prowe your answer by preparing a summary contricution marcin income statement at the breskeven level of sales. Show anly two categories of expenses: variable and foxed. 2. Compute the cottee shcp's mergin of satety in dollsrs. 3. Use the cotfee shop's operating lewersqe factor iusing the August contribution margin inccme etatement) to determine its new operating income if eales velumre iricresseses 10%. Prere your resulls using the contritulion rargin incoms statsorent format. Aessume that sales mix remains unchangerd
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