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Diva Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the monthly operating income statemen
Diva Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the monthly operating income statemen shown here to George Lupe, a potential investor in the business. Help Mr. Lupe understand Diva Beauty's cost structure. (Click the icon to view the operating income statement.) Read the reguirements. Requirement 1. Recast the income statement to emphasiza contribution margin. tructure. Data table 1. Recast the income statement to emphasize contribution margin. 2. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2020. 3. What is the margin of safety (in units) for June 2020? 4. If sales in June were only 8,500 units and Diva's tax rate is 30%, calculate its net income
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