10-27 Contribution margin, gross margin, and margin of safety. Mirabella Cosmetics manufactures and sells a face cream to small stores. It presents the monthly operating income statement shown here to Khalid Al Jassmi, a potential investor in the business. Help Khalid Al Jassmi understand Mirabella's cost structure. Review Home View D 1 10,000 $100,000 6 Insert Page Layout Formulas Data B Mirabella Cosmetics 2 Operating Income Statement, June 2011 3 Units sold 4 Revenues 5 Cost of goods sold Variable manufacturing costs $55,000 Fixed manufacturing costs 20,000 Total 9 Gross margin 10 Operating costs Variable marketing costs $ 5,000 12 Fixed marketing & administration costs 10,000 13 Total operating costs 14 Operating income 7 8 75,000 25,000 11 15,000 $ 10,000 1. Recast the income statement to emphasize contribution margin. 2. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2011. 3. What is the margin of safety (in units) for June 2011