CHAPTER 7 P7-66A CVP analysis at a multiproduct firm (Learning Objectives 4 & 5) The contribution margin income statement of Morgantown Coffee for October follows: B Morgantown Coffee Contribution Margin Income Statement Month Ended October 31 1 2 3 Sales revenue Less variable expenses: Cost of goods sold Marketing expense General and administrative expense $ 95,000 6 33,500 12,000 2,000 7 8 47,500 $ 47,500 9 10 Contribution margin 11 Less fixed expenses: Marketing expense S 19,125 12 13 14 Operating income General and administrative expense 22,500 $ 25,000 3,375 15 Morgantown 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 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 ex- penses: variable and fixed. 2. Compute the coffee shop's margin of safety in dollars