User Account

All Pages

Recast the income statement to emphasize contribution

Assignment Help Financial Accounting
Reference no: EM13514649

Contribution margin, gross margin, and margin of safety Mirabella Cosmetics manufactures and sells a face cream to small ethnic stores in the greater New York area. It presents the monthly operating income statement shown here to George Lopez, a potential investor in the business. Help Mr. Lopez understand Mirabella's cost structure..

2375_What is the margin of safety.PNG

If you want to use Excel to solve this exercise, go to the Excel Lab at www.prenhall.com/horngren/cost13e download the template for Exercise 3-31.

1. Recast the income statement to emphasize contribution margin.

2. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2008.

3. What is the margin of safety (in units) for June 2008?

4. If sales in June were only 8,000 units and Mirabella's tax rate is 30%, calculate its netincome

Reference no: EM13514649

Questions Cloud

Autumnal equinox-winter solstice and the vernal equinox : If you were to pick one of the four "cardinal" points of the year (the autumnal equinox, the winter solstice, the vernal equinox, and the summer solstice) to hold a celebration, which would you choose? Why? What would the celebration consist of? Why?
Explain what happens to the equilibrium position : This is the reaction that occurs for a bunsen burner, which is a source of heat for chemical reactions in the laboratory. CH4(g) + 2O(g) CO2(g) + 2H2O (g); for the system at equilibrium, which of the following explains what happens to the equili..
Find the period of this motion : The position of an object connected to a spring varies with time according to the expression x = (5.7 cm) sin(6.8?t). Find the period of this motion
Explain when cobalt chloride is added to pure water : When cobalt chloride is added to pure water, the CO ^2+ ions hydrate. The hydrated form then reacts with the Cl^- ions to set up equalibrium shown here
Recast the income statement to emphasize contribution : Recast the income statement to emphasize contribution margin and calculate the contribution margin percentage and breakeven point in units and revenues for June 2008.
Calculate the weight of the truck : A small ferryboat is 4.00 m wide and 6.00 m long. When a loaded truck pulls onto it, the boat sinks an additional 3.50 cm into the river. What is the weight of the truck
Determine force is exerted by the water on the window : What force is exerted by the water on the window of an underwater vehicle at this depth if the window is circular and has a diameter of 35.7 cm
Discuss the role of forensic anthropology : Discuss the role of forensic anthropology in the investigation of human rights violations and how physical evidence is useful in such investigations.
Find the mass of a solid gold rectangular bar : Calculate the mass of a solid gold rectangular bar that has dimensions lwh = 4.30 cm 10.0 cm 20.0 cm. (The density of gold is 19.3 103 kg/m3.)

Reviews

Write a Review

Financial Accounting Questions & Answers

  What gain or loss on retirement of bonds should reported

Based on the information given above, what gain or loss on retirement of bonds should be reported in the 2008 consolidated income statement?

  What should korral record as sales revenue on pinto

If Korral charges interest of 24% per year, compounded monthly, what should Korral record as sales revenue on the Pinto?

  Decision making as to process further or sale outsonimad

decision making as to process further or sale out.sonimad sawmill manufactures two lumber products from a joint milling

  Q1 accounting for intangible assetssweet limited a new

q1 accounting for intangible assetssweet limited a new zealand ice-cream manufactory is trying to prepare a new flavor

  How the company determined that the copyright

the company determined that the copyright would expire at the end of 2016. How much should the co. record as amortization expense for copyright for 2011?

  Determine the number of pounds of chemical x

Determine the number of pounds of Chemical X purchased. and evaluate the standard cost per pound of Chemical X.

  What is total shareholders equity at the end of 2011

Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8). What is total shareholders' equity at the end of 2011?

  Calculation of accumulated depreciationthe capital company

calculation of accumulated depreciation.the capital company purchased 3 machines in the past year. information

  Estimate the cost formula for truck operating costs

This cost increases to 8.75 cents per mile if a truck is driven 60,000 miles per year. Estimate the cost formula for truck operating costs using the high-low method.

  Analyse profitability liquidity and gearing financial ratios

Analyse the profitability, the liquidity and the gearing of Sessegnon Ltd based on the information above and using appropriate financial ratios. Would a new supplier be willing to give them credit?

  Question unified chemical company has a joint production

question unified chemical company has a joint production process that converts zeta into two chemicals beta and alpha.

  Determine balances of the partners capital accounts

Abbey is to receive an annual interest allowance of 10% of their beginning-year capital investment, and any REMAINING income or loss is to be shared equally. Determine balances of the partners CAPITAL accounts as of December 31, 2011

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd