- X iData Table Extreme Coffee Contribution Margin Income Statement Month Ended August 31 70,000 Sales revenue Less variable expenses: 18,000 Cost of goods sold 14,000 Marketing expense 35,000 3,000 General and administrative expense 35,000 Contribution margin Less fixed expenses: 12,750 Marketing expense 15,000 2,250 General and administrative expense 20,000 Operating income Print Done - X i 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 expenses: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 August contribution margin income statement) to determine its new operating income if sales volume increases 14%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged. Print Done P7-66A (similar to) The contribution margin income statement of Extreme Coffee for August follows: (Cick the icon to view the contribution margin income statoment) Extreme Coffee sells three smal coffees for every large coffee A small colfee 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 reguicements