Question: please make it easy to read - x Data table margin income statement of Unique Coffee for January follows: Con to view the contribution margin




- x Data table margin income statement of Unique Coffee for January follows: Con to view the contribution margin income statement.) all the mail.cots for clara.colum.Amal.cone sais for $2.00 with a vacational C Requirements reakevene 1. Determine the coffee shop's monthly breakeven point in the numbers of small coffees and large coffees. Prove your awer by preparing a summary contribution margin income stalement at the breakeven level of sales Show only two categories of expansen: variable and fixed 2 Compute the coffee shop's margin of safety in dollars 3. Use the coffee shop's operating leverage factor (using the January contribution margin income statement to determine its new operating income if sales volume increases 16% Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged. 1 Unique Coffee 2. Contribution Margin Income Statement 3 Month Ended January 31 4 Sesrovenue $ 125,000 5 Loss variable expenses 6 Cost of goods sold S 54.500 7 Marketing expense 7.000 8 General and administrative experie 1,500 63.000 9 Contribution margin $ 83,000 10 Less fore expenses 11 Marketing expense $ 28,000 12 General and administrative expense 7,000 35,000 $ 28,000 13 Operating income Print Done The contribution margin income statement of Unique Coffee for January follows: 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 salos 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.) = Breakeven sales in units Now calculate the wolghted average contribution margin per unit. (Round the weighted-average contribution margin per unit to the nearest cont.) Small Large Total Less The contribution margin income statement of Unique Coffee for January follows: GEORD Weighted average contribution margin per unit The breakeven point is small cups and large cups of coffee Prepare a summary contribution margin income statement to prove your answer above. (Complete all input fields. For amounts with a $0 balance, make sure to enter "o" in the appropriate input field.) Small Large Total Less: Less: Operating income Requirement 2. Compute the coffee shop's margin of safety in dollars. Requirem & OUM CHIU SHOP my by Him. 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 January contribution margin income statement) to determine its new operating income if sales volume increases 16%. Prove your results using the contribution margin income statement format Assume that sales mix remains unchanged. Identify the formula to compute the operating leverage factor. = Operating leverage factor (Round your answer to two decimal places.) Unique Coffee's operating leverage factor is of Unique Coffee can increase sales revenue by 16%, keeping the sales mix the same, operating income The contribution margin income statement of Unique Coffee for January follows: 1 Unique Coffee can increase sales revenue by 16%, 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 $0 balance, make sure to enter "O" in the appropriate input field.) Unique Coffee Effect on Operating Income of 16% Increase in Sales Volume Current level Dollar increase Percent increase Sales revenue 16% 16% Less Variable expenses Contribution margin Change in fixed expenses Operating income before sales increase Operating income after sales increase The contribution margin income statement of Unique Coffee for January follows: Click the icon to view the contribution margin income statement.) Unique 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
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