The contribution margin income statement of Westlake Coffee for May follows: (Click the icon to view the contribution margin income statement.) Westlake Coffee sells three small 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. 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 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: Weighted average contribution margin per unit The breakeven point is small cups and large cups of coffee. (Round your answer to two decimal places.) Westlake Coffee's operating leverage factor is If Westlake Coffee can increase sales revenue by 10%, keeping the sales mix the same, operating income will be $ Prepare a summary contribution margin income statement to prove your answer above. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Westlake Coffee Effect on Operating Income of 10% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 10% 10% Less: Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase i Requirements 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 May 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. * Data Table Westlake Coffee Contribution Margin Income Statement Month Ended May 31 $ 126,000 $ 44,000 16,000 3,000 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 63,000 63,000 $ $ 23,800 4,200 $ 28,000 35,000 Operating income