Starlet Cosmetics manufactures and sells a face cream to small, family-run stores in the greater...
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Accounting
Starlet Cosmetics manufactures and sells a face cream to small, family-run stores in the greater Montreal area. It presents the monthly operating statement of comprehensive income to Franois , Garnier, a potential investor in the business. Help Garnier understand 's Starlet's cost structure.
Starlet Cosmetics
Statement of Operating Income
For the Month of June
Units sold
15,000
Revenue
$180,000
Cost of goods sold
Variable manufacturing costs
$97,500
Fixed manufacturing costs
10,000
Total
107,500
Gross margin
72,500
Operating costs
Variable marketing costs
$6,900
Fixed marketing and administrative costs
10,000
Total operating costs
16,900
Operating income
$55,600
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