\begin{tabular}{|l|l|l|} \hline Break-even point in dollar sales & & \\ \hline Margin of safety in dollars & & \\ \hline Margin of safety percentage & & % \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Break-even point in dollar sales & & \\ \hline Margin of safety in dollars & & \\ \hline Margin of safety percentage & & % \\ \hline \end{tabular} Island Novelties, Incorporated, of Palau makes two products - Hawailan Fantasy and Tahitlan Joy, Each product's selling price, variable expense per unit and annual sales volume are as follows: Fixed expenses total $510,300 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the comparny as a whole. b. Compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $60 each and that has variable expenses of $42 per unit. If the company can sell 14,000 units of Samoan Delight without incurring any additional fixed expenses: a. Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the other two products does not change. b. Compute the company's revised break-even point in dollar sales. Also, compute its revised margin of safety in dollars and margin of safety percentage. \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ Island Novelties, Incorporated } \\ \hline \multicolumn{9}{|c|}{ Contribution Income Statement } \\ \hline & \multicolumn{3}{|c|}{ Hawaiian Fantasy } & \multicolumn{3}{|c|}{ Tahitian Joy } & \multicolumn{2}{|l|}{ Total } \\ \hline & & & % & & Amount & % & Amount & % \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline & $ & 0 & 0 & $ & 0 & 0 & 0 & 0 \\ \hline & & & & & & & & \\ \hline & & & & & & & $ & \\ \hline \end{tabular} Island Novelties, Incorporated Contribution Income Statement \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ Hawailan Fantasy } & \multicolumn{2}{|c|}{ Tahitian Joy } & \multicolumn{2}{|c|}{ Samoan Delight } & \multicolumn{2}{|l|}{ Total } \\ \hline & Amount & % & Amount & % & Amount & % & Amount & % \\ \hline & & & & & & & & \\ \hline & & & & & & & & \\ \hline 7 & $ & 0.0 & 0 & 00 & $ & 0.0 & 0 & 0.0 \\ \hline & & & & & & & & \\ \hline 7 & & & & & & & $ & \\ \hline \end{tabular}