use these 3 images

The contribution margin income statement of Awesome Coffee for July follows: (Click the icon to view the contribution margin income statement.) Awesome 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.) Fixed expenses Operating income + Weighed-avg. CM per unit 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 6 The contribution mage income statement of Awesome Cottee for Julyfoliows: Click the icon to view the corbution margin income statement Awesome Coffee sels tre al coffees for every large colie. A small collee sels 52.00, win a variable expense of 51.00. A large coffee sels for $4.00, with variable expense of $2.00 Read the aurement Requirement 1. Desermine the coffee shop's monthly bakeven point in the number of small comes and large coffees. Prove your answer by prepring summary contribution margin income statement at the realeven level of sales Show only two categories of expenses variable and tired Begin by identifying the forma compute the total breakeven point in uns. (Abreviations dag. Average Contration margin Faxed open Operating income > Weight CM per untersteven en in de Now all the weighted average contribution margin perunt. Round the weighted average contain marin perust to the rest Sma Large Total La 02 5 We canton margin perunt The brakeven pad are cup of coffee Prepare a summary contribution margin income statement to prove your answer above (Completa input file for amount with a 50 batanan make story in the appropriate utfold Small Large Total 6) Operating income Requirement 2. Compute the coffee shops margin of safety in dolor Identify the formula to compute the margin of safety in stats Margin at stay indian The margin of sately in dolari Requirement 3. Use the coffee shops operating leverage factoring the July contribution margin income statement to determine in new operating income sales volume increases 16%. Prove your results using the contribution margin come statement format Assume tha se mit remains unchanged. Identify the formula to compute the operating severage facto - Operating leverage factor Pound your answer to decimal places Awesome Cooperating leverage factor is Awesome Cotton cannreserve by 1 oping the same.com Prepare a summary contribution margin income statement to prove your answer above. For amounts with a balance, make sure to enter in the corporate input field) Awesome Coffee Effect on Operating income of 18% increase in Sales Volume Current Parca Dole 10% Variable penes Cotong Change in fired expenses Operating income before sales increase Operating income tales increase 105.000 1 Awesome Coffee 2 Contribution Margin Income Statement 3 Month Ended July 31 4 Series revenue 5 Lassable expenses 0 Cost of goods sold $ 39.000 7 Marketing expense 10,000 B Generad administrative expense 5,000 Contribution mag 5 10 Led sponses Marketing experie $ 24,000 12 General and administrative expense 6,000 S 13 Operating from 55.000 50.000 30.000 24.000 2: Requirements 1. Determine the coffee shop's monthly breakeven point in the number 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 fined 2. Compute the coffee shop's margin of safety in dollars. 3. Use the coffee shop's operating leverage factor (using the July contribution margin income statements to determine ds new operating income if sales volum increases 16%. Prove your results using the contribution margin income statement format Assume that sales mix remains unchanged. (1) (2 O Sales price per unit Variable expense per un Sales price per unit Variable expense per unit Contribution margin O Contribution margin per unit Sales mix in units Contribution margin O Contribution margin per unit Sales mis in units O Sales price per unit Variable expense per unit 140 Sales price per unit O Variable expense per unit Contribution margin Contribution margin per unit Sales mix in units Contribution margin O Contribution margin perut Sales mix in units 15) O O Sales price per unit Sales revenue Contribution margin Variable expense per un O Contribution margin variable expenses O Contribution margin per unit O Fixed expenses Sales mix in units Operating income WO Sales revenue BO Sales revenue Contribution margin Variable expenses Contribution margin Variable expenses Foxed expenses Fixed expenses Operating income Operating income O Sales revenue 110) Variable cont per unit Contribution margin Variable expenses Breakeven sales in dollars O Variable expenses Faced expenses Contribution marginatio Operating income Sales 112 Variable cost per unit Breakevens in dollars O Variable expenses Contribution margin ratio Sales Total costs Contribution margin Total revenues O Fixed costs O Variable costs Operating income Total costs Contribution margin Total revenues Fixed costs Variable costs Operating income 1. Winter Paradise Inc. operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 15% return on the company's $100 million of assets. The company incurs primarily fixed costs to groom the runs and operate the lifts Winter Paradise projects fixed costs to be $33,750,000 for the ski season. The resort serves 750,000 skiers and snowboarders each season. Variable costs are $10 per guest. The resort had such a favorable reputation among skiers and snowboarders that it had some control over the lift ticket prices. Assume that Winter Paradise's reputation has diminished and other resorts in the vicinity are charging only $65 per lift ticket. Winter Paradise has become a price-taker and won't be able to charge more than its competitors. At the market price, Winter Paradise's managers believe they will still serve 750,000 skiers and snowboarders each season. Read the requirements 1.1 Winter Paradise can't reduce its costs, what profit will it eam? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Show your analysis. Complete the following table to calculate Winter Paradise's projected income and excess profit or shortfall. (Use parentheses or a minus sign to show a profit shortfall.) Revenue at market price Less: Total costs Operating income Compared to the desired operating income of Expected excess profit (profit shortfall (Round the percentage to the nearest hundredth percent, X.XX%) As a percentage of assets, Winter Paradise's projected profit is Will investors be happy with this profit level? % (1) Stock prices (2) 2. Assume that Winter Paradise has found ways to cut its fixed costs to $30 million. What is its new target variable cost per skier/snowboarder? Assume investors want to earn a 15% return on assets. Compare this to the current variable cost per skier/snowboarder. Comment on your results. Complete the following table to calculate Winter Paradise's new target variable cost per customer. (Round your final answer to the nearest cent.) (3) Less: (5) Less: (6) Target total variable costs Divided by: Target variable cost per skler/snowboarder This target variable cost is (8) the current variable cost of $10. Winter Paradise (9) current variable cost this target since it is (10) the 1: Requirements 1. If Winter Paradise can't reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Show your analysis. Assume that Winter Paradise has found ways to cut its fixed costs to $30 million. What is its new target variable cost per skier/snowboarder? Assume investors want to earn a 15% return on assets. Compare this to the current variable cost per skierisnowboarder. Comment on your results. 2. (1) No, because the expected return on assets is greater than the desired return on assets. No, because the expected return on assets is less than the desired return on assets. Yes, because the expected return on assets is greater than the desired return on assets Yes, because the expected return on assets is less than the desired return on assets. (2) O may decline as a result. may increase as a result (3) Desired profit Number of skiers / snowboarders O Reduced level of fixed costs Revenue at market price Target revenue Target total costs Target total variable costs OOOO Revenue at market price Desired profit Target revenue Number of skiers / snowboarders Target total costs Reduced level of fixed costs Target total variable costs Revenue at market price Desired profit Target revenue Number of skiers/snowboarders Target total costs Reduced level of fixed costs Target total variable costs (5) O Desired profit Number of sklers/snowboarders Reduced level of fixed costs Revenue at market price Target revenue Target total costs Target total variable costs 0000 (7) (8) OOO Desired profit Number of skiers / snowboarders Reduced level of fixed costs Revenue at market price Target revenue Target total costs Target total variable costs almost equal to approximately 50% approximately two times (9) may have a difficult time achieving should easily be able to achieve (10) O so much lower than so much greater than somewhat equal to