Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

prepare in excel sheet Arthur Nery - Pag. 1) Contribution margin, gross margin, and margin of safety Mirabel Cosmetics manufactures and sells a face cream

prepare in excel sheet

image text in transcribed
Arthur Nery - Pag. 1) Contribution margin, gross margin, and margin of safety Mirabel Cosmetics manufactures and sells a face cream to small family-run store in Montreal area. It presents the monthly operating statement of comprehensive income shown here: Mirabel Cosmetics Statement of Operating Income For the Month of June Units Sold 10,000 Revenue $100,000 Cost of Goods Sold Variable Manufacturing Costs $55,000 Fixed Manufacturing Costs 20,000 Total 75,000 Gross Margin 25,000 Operating Costs Variable Marketing Costs $ 5,000 Fixed Marketing & Administration Costs 10,000 Total Operating Costs 15,000 Operating Income $ 10,000 Required: 1. Recast the statement of comprehensive income to emphasize contribution margin 2. Calculate the contribution margin percentage and breakeven point in units and revenue for June 2019 3. What is the margin of safety (in units) for June 2019

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

Recommended Textbook for

Mergers, Acquisitions, And Corporate Restructurings

Authors: Patrick A Gaughan

6th Edition

1118997549, 9781118997543

More Books

Students also viewed these Accounting questions