Question: PLEASE ANSWER ALL 3 REQUIREMENTS The contrlbution margin income statement of Unicue Coftee for July follows: (Click the icon to view the contribution margin income
PLEASE ANSWER ALL 3 REQUIREMENTS
The contrlbution margin income statement of Unicue Coftee for July follows: (Click the icon to view the contribution margin income statement.) Unique Ccffe sells three small coffees for every large coffee. A small coffee sells for $3.00, with a variable expense of $1.50. A large coffee sells for $5.00, with a variable expense of $2.50. Read the requirements. only two categories of expenses: variable and fixed. Begin by identfying the formula to compute the total breakeven point in units. (Abbreviations used: avg. = Average; CM = Contribution margin.) = Breakeven sales in units Data table Requirements 1. Determine the cottee shop's monthly oreakeven point in the numbers of small cottecs anc large cottecs. Prave 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 safery in dollars. 3. Use the caffee shop's operating leverage factor (using the July contribution margin income statement) to determine its new operating inccme if sales volume increases 10%. Prove your results usine the contribution margin income ststement format. Assume that sales mix remains unchanged
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