The contribution margin income statement of Wostake Coffee for August follaws: If If (Cick the icon to view the contritution margin income statempont.) Westiake CoAlee sells three small coltoes for every large collee. A small cotlee sells for $2.00, with a variable expente of $1,00. A large colloe seis for $4,00, with a variabie expense of $2.00. Road the teguirements 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 August 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. Requirement 1. Determine the collee shop's monthly breakeven point in the numbers of small coffees and large cotfees. Prove your answer by preparing a summary contrbution margin income statement at the breakeven level of sales. Show only two calegories of expenses: vaeiable and foced. Begin by identitying the formula to compute the total breakeven point in unita. (Abbroviations used: avg. = Average; CM = Contribubion margin) Now calculate the weighted-average contribution margin per unit (Round the weighted-average contributian margin per unit to the nearest cent.) Weighted-average conhribution margin per unit The breakeven point is smal cups and harge cups of cotee Requirement 2. Compute the coflee shop's margin of safety in dollars. Identify the formula to compule the margin of salety in dollars. Requirement 2. Compute the callee shop's margin of salety in dollars. Identify the formula to compute the margin of salety in dollars. The margh of safety in dollars is Requirement 3. Use the colfee shopis oporating leverage factor (using the August conbibution margin income statement) to determine is new operating income if sales volume increases 10\%. Prove your results using the contribution margin income statement format. Assume that sabs mix remains unchanged. Identily the formula to compute the operating leverage factor: (Round your answer to two decimal places.) Westiake Cofleo's operating leverage tactor is If Westlake Coffee can increase sales revenue by 10%, keeping the sales mix the same, operating income will be Prepare a summary contrbution margin income statement to prove your answer above. (For amcunts with a $0 balance, make sure to enter "o" in the appropriate input feld) Westlake Colfee Effect on Operating Income of 10% Increase in Sales Volume Sales revenue Less: Variable expenses Contribution margin level Percont increase Dollar increase Change in fixed expenses : Operating income before soles increase Operating income after sales increase The contribution margin income statement of Wostake Coffee for August follaws: If If (Cick the icon to view the contritution margin income statempont.) Westiake CoAlee sells three small coltoes for every large collee. A small cotlee sells for $2.00, with a variable expente of $1,00. A large colloe seis for $4,00, with a variabie expense of $2.00. Road the teguirements 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 August 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. Requirement 1. Determine the collee shop's monthly breakeven point in the numbers of small coffees and large cotfees. Prove your answer by preparing a summary contrbution margin income statement at the breakeven level of sales. Show only two calegories of expenses: vaeiable and foced. Begin by identitying the formula to compute the total breakeven point in unita. (Abbroviations used: avg. = Average; CM = Contribubion margin) Now calculate the weighted-average contribution margin per unit (Round the weighted-average contributian margin per unit to the nearest cent.) Weighted-average conhribution margin per unit The breakeven point is smal cups and harge cups of cotee Requirement 2. Compute the coflee shop's margin of safety in dollars. Identify the formula to compule the margin of salety in dollars. Requirement 2. Compute the callee shop's margin of salety in dollars. Identify the formula to compute the margin of salety in dollars. The margh of safety in dollars is Requirement 3. Use the colfee shopis oporating leverage factor (using the August conbibution margin income statement) to determine is new operating income if sales volume increases 10\%. Prove your results using the contribution margin income statement format. Assume that sabs mix remains unchanged. Identily the formula to compute the operating leverage factor: (Round your answer to two decimal places.) Westiake Cofleo's operating leverage tactor is If Westlake Coffee can increase sales revenue by 10%, keeping the sales mix the same, operating income will be Prepare a summary contrbution margin income statement to prove your answer above. (For amcunts with a $0 balance, make sure to enter "o" in the appropriate input feld) Westlake Colfee Effect on Operating Income of 10% Increase in Sales Volume Sales revenue Less: Variable expenses Contribution margin level Percont increase Dollar increase Change in fixed expenses : Operating income before soles increase Operating income after sales increase