3-31 Contribution margin, gross margin, and margin of safety. Mirabella Cosmetics manufactures and sells a face cream to small ethnic stores in the greater New York area. It presents the monthly operating income statement shown here to George Lopez, a potential investor in the business. Help Mr. Lopez under- stand Mirabella's cost structure. ASSIGNMENT MATERIAL Review View D 10,000 $100,000 Home Insert Page Layout Formulas Data A B 1 Mirabella Cosmetics 2. Operating Income Statement, June 2011 3 Units sold 4 Revenues 5 Cost of goods sold 6 Variable manufacturing costs $55,000 Fixed manufacturing costs 20,000 8 Total 9 Gross margin 10 Operating costs 11 Variable marketing costs $ 5,000 12 Fixed marketing & administration costs 10,000 13 Total operating costs 14 Operating income 7 75,000 25,000 15,000 $ 10,000 Required 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? 4. If sales in June were only 8,000 units and Mirabella's tax rate is 30%, calculate its net income