Juicy 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 Lopez,

a potential investor in the business. Help Mr. Lopez understand Juicy Beauty's cost structure.

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 16,000 units and Juicy's tax rate is 30%, calculate its net income. Juicy Beauty Operating Income Statement, June 2017 Units sold 20,000 Revenues $200,000 Cost of goods sold Variable manufacturing costs $110,000 Fixed manufacturing costs 40,000 Total 150,000 Gross margin 50,000 Operating costs Variable marketing costs $10,000 Fixed marketing and administrative costs 20,000 Total operating costs 30,000 Operating income $20,000