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The contribution margin income statement of Unique Coffee for January follows: (Click the icon to view the contribution margin income statement.) Unique Coffee sells three
The contribution margin income statement of Unique Coffee for January follows: (Click the icon to view the contribution margin income statement.) Unique Coffee sells three small coffees for every large coffee. A small coffee sells 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 feauirement + 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 contribution margin income statement at the breakeven level of sales. Show only two categories of expenses: variable and fixed. Begin by identifying the formula to compute the total breakeven point in units. (Abbreviations used: avg. = Average; CM = Contribution margin.) Fixed expenses Operating income ) Weighed-avg. CM per unit = Breakeven sales in units Now calculate the weighted average contribution margin per unit. (Round the weighted average contribution margin per unit to the nearest cent.) Small Large Total Sales price per unit Less: Variable expense per unit 2 Contribution margin Sales mix in units Weighted average contribution margin per unit
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