Solution-Recast the income statement to emphasize

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.)

User Account

All Pages

Recast the income statement to emphasize contribution

Reference no: EM13514649

Reference no: EM13514649

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT