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The contribution margin income statement of Unique Coffee for October follows: (Click the icon to view the contribution margin income statement.) Unique Coffee sells three

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The contribution margin income statement of Unique Coffee for October 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 requirements. 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.) Breakeven sales in units Requirements Now calculate the weighted-average contribution margin per unit. (Round the weighted-average contribution margin per unit to the nearest cent.) Small Large Total Less: 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 October 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. Weighted average contribution margin per unit The breakeven point is small cups and large cups of coffee. Print Done Choose from any list or enter any number in the input fields and then continue to the next question. ? i Data Table Unique Coffee Contribution Margin Income Statement Month Ended October 31 $ 100,000 $ 36,500 Sales revenue Less variable expenses: Cost of goods sold Marketing expense General and administrative expense Contribution margin Less fixed expenses: Marketing expense General and administrative expense 10,000 3,500 50,000 $ 50,000 $ 20,000 5,000 25,000 $ 25,000 Operating income Print Done avt etien

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