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2. Another product, Samoan Delight, has just come onto the market. Assume that the company could sell 10,000 units at $45 each. The variable expenses

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2. Another product, Samoan Delight, has just come onto the market. Assume that the company could sell 10,000 units at $45 each. The variable expenses would be $36 each. The company's fixed expenses would not change. a. Prepare another contribution income statement, including sales of the Samoan Delight (sales of the other two products would not change). Carry percentage computations to one decimal place. b. Compute the company's new break-even point in dollars and the new margin of safety in both dollars and percent. Critical Thinking Question Q2- Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data on the two products follow: Hawaiian Fantasy Tahitian Joy Selling price per unit $15 $100 Variable expenses per unit 9 20 Number of units sold annually 20,000 5,000 Fixed expenses total $475,800 per year. The Republic of Palau uses the U.S. dollar as its currency

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