chapter 5 question 1

req 1

req 1b

req 2a

2b

1 Island Novelties, Inc., of Palau makes two products - Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Fantasy $ 40 $ 24 39,000 Tahitian Joy $ 140 $ 28 6,000 Fixed expenses total $907,200 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 company 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 $50 each and that has variable expenses of $40 per unit. If the company can sell 12.000 units of Samoan Delight without incurring any additional food expenses: a. Prepare a revised contribution format income statement thot 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 solos. Also, compute its revised margin of safety in dollars and margin of safety percentage Complete this question by entering your answers in the tabs below. Red 1A Reg 10 Reg 2A Reg 20 Assuming the sales mix given above, do the following: Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. Island Novelties, Inc 1 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 company as a whole b. Compute the company's break-even point in dollar soles. 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 $50 each and that hos variable expenses of $40 per unit. If the company can sell 12,000 units of Samoan Delight without incurring any additional fixed expenses a. Prepare a revised contribution format income statement that includes Somoan Delight. Assume that soles of the other two products does not change. b. Compute the company's revised break-even point in dollor soles. Also, compute its revised margin of safety in dollars and margin of safety percentage. Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2A Reg 28 Assuming the sales mix given above, do the following: Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. Total Island Novelties, Inc. Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount % Amount % % % % Amount % % % % Reg 18 > 1 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 company 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 $50 each and that has variable expenses of $40 per unit. If the company can sell 12,000 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 Complete this question by entering your answers in the tabs below. Req Reg 18 Red 2A Reg 20 Assuming the sales mix given above, do the following: Compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. (Do not round your intermediate calculations Round your "Margin of safety percentage final answer to 1 decimal place (1 0.1234 should be entered as 12.3). Round your other final answers to the nearest whole dollar) Break even point in dollar sales Margin of safety in dollars Margin of safety percentage 5 6 Check my work percentage 2. The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12.000 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 Complete this question by entering your answers in the tabs below. Rea 1 Reg 13 Reg 2A Reg 28 The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12.000 Samoan Delight without incurring any additional foxed expenses: Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sale other two products does not change. (Round your Percentage answers to 1 decimal place (le 0.1234 should be entered as 123).) Show Island Novelties, Inc. Contribution Income Statement Hawaiian Fantasy Tahitinn Joy Amount Amount % % % 5 Samoan Delight Amount Total Amount 4 % % 1 percentage 2. The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12,000 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 margir of safety percentage. Complete this question by entering your answers in the tabs below. Req 1A Reg 10 Reg 2A Reg 28 The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12,000 units of Samoan Delight without incurring any additional fixed expenses: 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. (Do not round your intermediate calculations. Round your "Margin of safety percentage final answer to 1 decimal place (1.6 0.1234 should be entered as 12.3). Round your other final answers to the nearest whole dollar.) Show less Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage