Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data table High End Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the monthly

image text in transcribedimage text in transcribed

Data table High End 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 Lupe, a potential investor in the business. Help Mr. Lupe understand High End Beauty's cost structure. (Click the icon to view the operating income statement.) Read the Requirement 1. Recast the income statement to emphasize conttribution margin. Requirement 2. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2020. 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.) ==Contributionmarginpercentage1=% 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. =Breakevenpointinunits=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.) ]=Breakevenpointinrevenues% Requirement 3. What is the margin of safety (in units) for June 2020 ? 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 2020. ]=Marginofsafety=units Requirement 4. If sales in June were only 9,500 units and High End's tax rate is 30\%, calculate its net income. Complete the table below to calculate High End's net income if sales were only 9,500 units and High End's tax rate is 30\%. (Round the tax expense to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions