P Do Homework - Homework 3 Accounting II work 3 K CO Question 6, P7-72B (final answer) Part 5 of 5 HW Score: 80.57%, 4 Points: 2.11 of 3 The contribution margin income statement of Top of the Crop Coffee for July follows: (Click the icon to view the contribution margin income statement.) Top of the Crop 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 Read the requirements. m Requirement 2. Compute the coffee shop's margin of safety in dollars. The margin of safety in dollars is $ 48,000 Requirement 3. Use the coffee shop's operating leverage factor (using the July contribution margin income statement) to determine its new ope your results using the contribution margin income statement format. Assume that sales mix remains unchanged. (Round the operating leverage If Top of the Crop Coffee can increase sales revenue by 16%, keeping the sales mix the same, operating income will be $ 32,640 Prepare a summary contribution margin income statement to prove your answer above. (For amounts with a $0 balance, make sure to enter "0" in Top of the Crop Coffee Sales revenue Effect on Operating Income of 16% Increase in Sales Volume Less: Variable expenses Current level Percent increase 16% 16% Dollar increase Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase