The contribution margin income statement of Westlake Coffee for October follows: E: (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 $2.00, with a variable expense of $1.00. A large coffee sells for $4.00, with a variable expense of $2.00 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 15%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged. Contribution Margin Income Statement Month Ended October 31 CA 95,000 30,000 16,000 1,500 47,500 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 Operating income $ 47,500 $ 19,125 3,375 22,500 $ 25,000 Requirement 1. Determine the coffee shop's monthly breakeven point in the numbers of small coffees and large coffees. Prove your answer by pr- 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) b 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 hunn nint ir mall Barn Afrin The contribution margin income statement of Bountiful Bean Coffee for October follows: E (Click the icon to view the contribution margin income statement.) Bountiful Bean Coffee sells three small coffees for every large coffee. A small coffee sells for $2.00, with a variable exper Read the requirements Weighted average contribution margin per unit The breakeven point is small cups and large cups of coffee Prepare a summary contribution margin income statement to prove your answer above. (Complete all answer boxes. For e Small Large Total Less Less Operating income Requirement 2. Compute the coffee shop's margin of safety in dollars. Identify the formula to compute the margin of safety in dollars. Margin of safety in dollars v vruty ay LUHIEU. A Small cortee sells for $2.00, with a variable Read the requirements. Requirement 2. Compute the contee snop's margin or sarety in dollars. Identify the formula to compute the margin of safety in dollars. Margin of safety in dollars The margin of safety in dollars is $ Requirement 3. Use the coffee shop's operating leverage factor (using the October contribution margin income state statement format. Assume that sales mix remains unchanged. Identify the formula to compute the operating leverage factor Operating leverage factor (Round your answer to two decimal places) Bountiful Bean Coffee's operating leverage factor is If Bountiful Bean Coffee can increase sales revenue by 15%, 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 "o" in the appropriate coll) Bountiful Bean Coffee Effect on Operating Income of 15% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 15% Loss Variable expenses 154 Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase Choose from any list or enter any number in the input fields and then continue to the next