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The contribution margin income statement of Westlake Coffee for October follows: ?(Click the icon to view the contribution margin income statement.) Westlake Coffee sells three
The contribution margin income statement of Westlake Coffee for October 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. )f 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: 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 amounts with a $0 balance make sure to enter "0" in the appropriate cell.) Small Large Total Less: Less: Operating income
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