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Please explain requirement 4 in great detail.
E3-36 (similar to) High End Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles a
Los Angeles area. It presents the monthly operating income statement shown here to George Lopez, a potential investor in the
Requirement 1. Recast the income statement to emphasize contribution margin. 10,000 $ 120,000 High End Cosmetics Operating In
E3-36 (similar to) High End Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles a
Requirement 4. If sales in June were only 8,500 units and High Ends tax rate is 30%, calculate its net income. Complete the
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Answer #1

Particulars Amount ($) Calculation Contribution Margin 40800=8500x4.8 - Fixed Costs -37920 =19920+18000 Operating Income 2880

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