Question

Mirabel Cosmetics manufactures and sells a face cream to small family-run stores in the greater Montreal area. It presents the monthly operating income statement shown here to François Laval, a potential investor in the business. Help Mr. Laval understand Mirabel’s cost structure.
REQUIRED
1. Recast the income statement to emphasize contribution margin.
2. Calculate the contribution margin percentage and breakeven point in units and revenues for June 2013.
3. What is the margin of safety (in units) for June 2013?
4. If sales in June were only 8,000 units and Mirabel’s tax rate is 30%, calculate its net income.


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  • CreatedJuly 31, 2015
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