Homework #4 i Problem 5-27 (Algo) Sales Mix; Break-Even Analysis; Margin of Safety [LO5-7, LO5-9] 13 Saved Island Novelties, Incorporated, of Palau makes two products-Hawallan Fantasy and Tahitian Joy. Each product's selling price expense per unit and annual sales volume are as follows: 0.66 points Selling price per unit Variable expense per unit Hawaiian Fantasy $ 20 Number of units sold annually $ 9 18,000 Tahitian Joy $ 140 $ 35 6,000 Fixed expenses total $710,700 per year. eBook References 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 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 percentage. 2. The company has developed a new product called Samoan Delight that sells for $60 each and that has variable expenses per unit. If the company can sell 15,000 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 t 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 a of safety percentage. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B 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, Incorporated Contribution Income Statement Hawaiian Fantasy Amount % Tahitian Joy Amount Total % Amount % Reg 1A Reg 1B >