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10.at Table Bella Beauty Operating Income Statement, June 2017 Units sold 10,000 Revenues 150,000 Cost of goods sold Variable manufacturing costs 75,000 28,165 103,165 Fixed

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10.at Table Bella Beauty Operating Income Statement, June 2017 Units sold 10,000 Revenues 150,000 Cost of goods sold Variable manufacturing costs 75,000 28,165 103,165 Fixed manufacturing costs Total Gross margin Operating costs Variable marketing costs 46,835 13,500 15,500 Fixed marketing and administrative costs Total operating costs 29,000 17,835 Operating income 19: Requirements 1. Recast the income statement to emphasize contribution margin. 2. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2017 3. What is the margin of safety (in units) for June 2017? 4. If sales in June were only 8,500 units and Bella's tax rate is 30%, calculate its net income. 15. Bella Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the monthly operating income statement shown here to George Diaz, a potential investor in the business. Help Mr. Diaz understand Bella Beauty's cost structure. 18 (Click the icon to view the operating income statement.) Read the requirements 19. Requirement 1. Recast the income statement to emphasize contribution margin. Bella Cosmetics Operating Income Statement, June 2017 (1) (2) (3) (5) (6) TI (7) (8) (9) (10) (11) (12) Requirement 2. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2017. Begin by selecting the formula to calculate the contribution margin percentage. Then enter the amounts in the formula to calculate the percent. (Enter the percentage as a whole number.) (13) (14) = Contribution margin percentage ( ) = % Determine the formula for the breakeven point in units. Next, enter the amounts to calculate the breakeven point. (Enter the contribution margin per unit to two decimal places, X.XX.) Breakeven point (15) 1 (16) in units units Determine the formula to calculate the breakeven point in revenues. Then, enter the amounts in the formula. (Enter the percentage as a whole number.) Breakeven point in revenues (17) (18) = % = Requirement 3. What is the margin of safety (in units) for June 2017? Determine the formula to calculate the margin of safety in units. Then enter the amounts in the formula and calculate the margin of safety for June 2017. Margin of (19) (20) safety Il Il units Requirement 4. If sales in June were only 8,500 units and Bella's tax rate is 30%, calculate its net income. Complete the table below to calculate Bella's net income if sales were only 8,500 units and Bella's tax rate is 30%. (Round the tax expense to the nearest whole number.) (21) (22) (23) Less: Less: (24) (25)

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