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Hollywood Cosmetics manufactures and sells a face cream to small, family-run stores in the greater...

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Accounting

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Hollywood Cosmetics manufactures and sells a face cream to small, family-run stores in the greater Montreal area. It presents the monthly operating income statemernt shown here to Franois Garnier, a potential investor in the business. Help Garnier understand Hollywood's cost structure (click the icon to view the operating income statement) Required 1. Recast the statement of operating income in a contribution format. 2. Calculate the contribution margin percentage and breakeven point in units and revenues for June. 3. What is the margin of safety (in units) for June? 4. If sales in June were only 9,000 units and Hollywood's tax rate is 30%, calculate Hollywood's net income

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