bluow to 10a fina oce 101 01.03 bisq 28 Roma Skincare sibem anti ins Operating Income Statement June 2020 19V878 2 3 Units sold 4 Revenues 5 Cost of goods sold 6 Variable manufacturing costs 7 8 9 Gross margin 4. Wh 5. If 10 Operating costs: 21800 11 6000,00 12 000,00 13 000,08 14 Operating income 2, W sent neg awoligt be spe Fixed manufacturing costs Total cost of goods sold Variable marketing costs Fixed marketing & admin. costs m Total operating costs alanl 000,008 $60,000 22,000 $ 6,000 14,000 000 RIE 1. Recast the income statement to emphasize contribution margin. 1.000 15,000 $120,000 $ 82,000 $ 38,000 adverti $ 20,000 $18,000 of Hobbs wen erit ed navedsand . Britsiaqo .d 10 910) of 19tefl 9V3 88-8 ni assilsizega asilique toerine 281682 108110 v162 traits Burs noutateinimba 81200 Istol 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?
bluow to 10a fina oce 101 01.03 bisq 28 Roma Skincare sibem anti ins Operating Income Statement June 2020 19V878 2 3 Units sold 4 Revenues 5 Cost of goods sold 6 Variable manufacturing costs 7 8 9 Gross margin 4. Wh 5. If 10 Operating costs: 21800 11 6000,00 12 000,00 13 000,08 14 Operating income 2, W sent neg awoligt be spe Fixed manufacturing costs Total cost of goods sold Variable marketing costs Fixed marketing & admin. costs m Total operating costs alanl 000,008 $60,000 22,000 $ 6,000 14,000 000 RIE 1. Recast the income statement to emphasize contribution margin. 1.000 15,000 $120,000 $ 82,000 $ 38,000 adverti $ 20,000 $18,000 of Hobbs wen erit ed navedsand . Britsiaqo .d 10 910) of 19tefl 9V3 88-8 ni assilsizega asilique toerine 281682 108110 v162 traits Burs noutateinimba 81200 Istol 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:3-36 Contribution margin, gross margin, and margin of safety. Roma Skincare manufactures and sells a
face cream to small specialty stores in Victoria, Australia. It presents the monthly operating income state-
ment shown here to Jacob Scott, a potential investor in the business. Help Mr. Scott understand Roma
Skincare's cost structure.
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Operating Income Statement June 2020
3
Units sold
Revenues
Cost of goods sold
4
5
6 Variable manufacturing costs
7
Fixed manufacturing costs
be
8
Total cost of goods sold
Spe
9
Gross margin
4. Wh
5. If 10 Operating costs:
21800 11
6000,00 12
000,00 13
000.08 14 Operating income
000.8
Variable marketing costs
$ 6,000
Fixed marketing & admin. costs m 10000114,000
000,008
Total operating costs
$60,000
22,000
2120
15,000
$120,000
$ 82,000
$ 38,000
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$ 18,000
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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?
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4. If sales in June were only 12,000 units and Roma Skincare's tax rate is 30%, calculate its net income.
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