Royalty 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 Tomes, a potential investor in the business. Help Mr$.$ Tomes understand Royalty Beauty's cost structure.

$($Click the icon to view the operating income statement.$)$

Read the requirements.

P$3-41($similar to$)$

Royalty Cosmetics

Operating Income Statement, June $2020$

E$3-28($similar to$)$

Requirements

Recast the income statement to emphasize contribution margin.

Calculate the contribution margin percentage and breakeven point in units

and revenues for June $2020.$

What is the margin of safety $($in units$)$ for June $2020?$

If sales in June were only $8,500$ units and Royalty's tax rate is $30\%,$ calculate

its net income.

Data table