Solution-Calculate the contribution margin percentage

Calculate the contribution margin percentage

Reference no: EM132548630

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

GomezGomez?, a potential investor in the business. Help Mr. GomezGomez understand RoyaltyRoyalty ?Beauty's cost structure.

Royalty Beauty

Operating Income Statement, June 2017

Units sold 10,000

Revenues $120,000

Cost of goods sold

Variable manufacturing costs $65,000

Fixed manufacturing costs 28,240

Total 93,240

Gross margin 26,760

Operating costs

Variable marketing costs $2,200

Fixed marketing and administrative costs 14,000

Total operating costs 16,200

Operating income $10,560

Question 1: Recast the income statement to emphasize contribution margin.

Question 2: Calculate the contribution margin percentage and breakeven point in units and revenues for June 2017

Question 3: What is the margin of safety? (in units) for June 2017

Reference no: EM132548630

Questions Cloud

Prepare journal entry to transfer out the cost of goods : Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare journal entry to transfer out the cost

What is the narrator mental state : What is the narrator's mental state? How do you know? How does Poe's language help convey the mental state of the narrator?

What is a hybrid costing system : Briefly explain with examples the varied products or outputs in a joint cost process? What is a hybrid costing system? Explain with examples.

How could we reduce the given percentage even further : In your own opinion, how could we reduce this percentage even further? What are the current temptations amongst young smokers and, how can we further reduce.

Calculate the contribution margin percentage : Calculate the contribution margin percentage and breakeven point in units and revenues for June 2017.What is the margin of safety? (in units) for June

Conduct an interview using the interview questions listed : Interview - Candidates must contact a special education administrator and conduct an interview using the interview questions listed.

Implications of covid 19 to the tourism sector : Discuss the implications of COVID 19 to the Tourism Sector of the Pacific Island Economies with relevance to the following:

Calculate the profit margin for both chairs and desks : Based on the CFO's new policy, Calculate the profit margin for both chairs and desks. Which of the two products should be dropped?

Developing tacit and explicit knowledge sharing : How are the CoPs in ChevronTexaco different to an organizational network? How is it developing tacit & explicit knowledge sharing?

User Account

All Pages

Calculate the contribution margin percentage

Reference no: EM132548630

Reference no: EM132548630

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT