2. The company has developed another type of gloves that provide better protection in extreme cold, Toasty, which the company plans to sell for $15.50 per pair. At this price, the company expects to sell 900 pairs per month of the product. The variable expense would be $12.40 per pair. The company's fixed expenses would not change. 8. Prepare another contribution format income statement, including sales of Toasty (sales of the other two products would not change). (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Warm Cozy % Toasty Total 0 $ $ 0 0.00 0.00 0 $ 0 0.00 Sales Variable expenses Contribution margin Fixed expenses Net operating income whole and the new margin of safety in both dollars answer to 2 decimal WARM HANDS Contribution Income Statement Warm Cozy % Toasty Total Sales Variable expenses Contribution margin Fixed expenses Net operating income 0 $ 0 000 $ 0 0.00 % 0 0.00 0 b. Compute the company's new break-even point in dollars for the company as a whole and the new margin of safety in both dollars and percentage of sales. (Round your break-even sales to the nearest whole dollar amount and percentage answer to 2 decimal places.) Break-even sales dollars Margin of safety in dollars Margin of safety in percentage 76.00% Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Warm Selling price per pair Variable expenses per pair Number of pairs sold monthly $ 5.00 $ 1.25 2,700 units Cozy $ 7.50 $ 3.75 900 units Fixed expenses are $3,240 per month Required: 1. Assuming the sales mix above, do the following: a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Cozy Warm Total Sales Variable expenses Contribution margin $ 13.500 3,375 $ 10,125 10000 $ 6.750 25.00 3375 7500 S 3.375 10000 5000 5000 $ 20.250 6.750 13 500 10000 33 33 66 67 2n civ AVRAC Next