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Contribution margin, gross margin, and margin of safety. Roma Skincare manufactures and sells a face cream to small specialty stores in Victoria, Australia. It presents
Contribution margin, gross margin, and margin of safety. Roma Skincare manufactures and sells a face cream to small specialty stores in Victoria, Australia. It presents the monthly operating income state- ment shown here to Jacob Scott, a potential investor in the business. Help Mr. Scott understand Roma Skincare's cost structure. 4 6 Home Insert Page Layout Formulas Data Review View A B C D 1 Roma Skincare 2 Operating Income Statement June, 2017 3 Units sold 15,000 nues $1,20,000 5 Cost of goods sold Variable manufacturing costs $60,000 7 Fixed manufacturing costs $22,000 8 Total cost of goods sold $ 82,000 9 Gross margin S 38,000 10 Operating costs 11 Variable marketing costs $ 6,000 Fixed marketing & admin costs $14,000 13 Total operating costs $ 20,000 14. Operating income $ 18,000 12
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