Royalty Beauty manufactures and sells a face cream to small specialty stores in the greater...

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Accounting

Royalty 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 Tomes, a potential investor in the business. Help Mr. Tomes understand Royalty Beauty's cost structure.
(Click the icon to view the operating income statement.)
Read the requirements.
P3-41(similar to)
Royalty Cosmetics
Operating Income Statement, June 2020
E3-28(similar to)
Requirements
Recast the income statement to emphasize contribution margin.
Calculate the contribution margin percentage and breakeven point in units
and revenues for June 2020.
What is the margin of safety (in units) for June 2020?
If sales in June were only 8,500 units and Royalty's tax rate is 30%, calculate
its net income.
Data table
image

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