Coffee for August follows: me statement.) e coffee. A small coffee * Data Table able expense of $2.00. breakeven point in the A B bntribution margin income statem 1 Extreme Coffee reakeven point in units. 2 Contribution Margin Income Statement Month Ended August 31 3 gin per unit. (Round the 4 Sales revenue $ 95,000 Small Largo 33,000 11,000 3,500 47,500 5 Less variable expenses 6 Cost of goods sold 7 Marketing expense 8 General and administrative expense 9 Contribution margin 10 Less fixed expenses: 11 Marketing expense 12 General and administrative expense 13 Operating income $ 47,500 $ 19,125 3,375 large cups o 22,500 25,000 $ tement to prove your ans The contribution margin income statement of Extreme Coffee for August follows: Click the icon to view the contribution margin income statement) Extreme Coffee sells three small coffees for every large coffee. A small coffee well for $2.00 with a variable expense of $1.00. A large coffee sets 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 bevel 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) Breakeve sales in units Now calculate the weighted average contribution margin per unit. (Round the weighted average contribution margin per unit to the nearest cont) Small Large Total Less: Weighted average contribution margin per unit The breakeven point is small cups and large cup of coffee Prepare a summary contribution margin income statement to prove your answer above (Complete all input fields. For amounts with a balance, make sure to enter in the appropriate outfield) Small Large Total Click the loon to view the contribution margin income statement Extreme Coffee sels three mal coffees for every large coffee. A small coffee sels 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 realicements Prepare a summary contribution margin income statement to prove your answer above. (Complete all input fields. For amounts with a blanc, make sure to enter in the appropriate input fold) Large Total Loss Less Operating income Requirement 2. Compute the coffee shop's margin of safety in dollars Identity 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 August contribution margin income statement) to determine is now operwing income il sales volume increases 17. Prove your rung the contributionary income statement format Assume that sales mix remains unchanged. Identify the formula to compute the operating leverage factor Operating leverage factor The contribution margin income statement of Extreme Coffee for August follows: Click the icon to view the contribution margin income statement.) Extreme 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 Operating leverage factor (Round your answer to two decimal places) Extreme Cole's operating leverage factor is If Extreme Coffee can increase sales revenue by 11%, 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 50 balance, make sure to enter "o" in the appropriate input field.) Extreme Coffee Effect on Operating Income of 11% Increase in Sales Volume Current level Percent increase Dollar increase Sales revenue 11% Less: Variable expenses 11% Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase