The contribution margin income statement of Krazy Kup Coffee for July follows (Click the icon to view the contribution margin income statement Krazy Kup Coffoe roll three smal caffees for every large coffee. A small coffee sells for $3.00, with a variable expense of $150 A large coffee nells for $5.00 with a variabile expense of $250 Read the requirements egin by conting me to to compute me to breakeven pointunes obreviations used wg Average Contribution margin Fixed expenses Operating income - Weighed avg CM per unit Breakeven sales in units Now calculate the weighted average contribution margin perunt. (Round the weighted average contribution margin por unit to the nearest cent) Small Large Total Sales price per un Vanable pene per il Contribution marga per unit Leon Sales mix in un Contibution angla Windverage contar perant Choose from any it or enter a number in the input fields and men chick Check Answer 5B (1) LO Assignment#2 1 of 3 (1 complete) CO) statement of Krazy Kup Coffee for July follows: ontribution margin income statement.) all coffees for every large coffee. A small coffee sells for $3.00 with a variable expense of $1.50. A large coffee sells for $5.00, with a variable expense of 2.50 to compute the total breakeven point in units. Abbreviations used: avg Average; CM - Contribution margin.) Operating income - Weighed-avg CM per unit - Breakeven sales in units erage contribution margin per unit. (Round the weighted average contribution margin per unit to the nearest cent.) Small Large Total 4 margin per unit Tany number in the input fields and then click Check Answer Clear All RE Data Table Coffee for Je e statement e coffee. As a va N Krazy Kup Coffee Contribution Margin Income Statement Month Ended July 31 akeven point 3 me 4 Sales revenue $ 126,000 per unit. (RO Small $ 43,000 15,000 8 5,000 63.000 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 $ 63,000 $ 23.800 4.200 28,000 35 000 w 13 Operating income at fields and Print Done mall.coffee sells for $3.00 with a variable expense of $150 A large coffee sells for $5.00 wi. i Requirements -X 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 July contribution margin income statement) to determine its new operating income if sales volume increases 10%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged. Print Done then click Check
