Island Novelties Inc. of Palau makes two products - Hawaian Fantasy and Tahitian Joy. Each product's seling price, variable expense per unit and annual sales volume are as follows: Selling price per Vable expense permit Sumber of units 2010 maally EASY 0 20 Tahitan Joy 5 10 33 5.000 22.000 Foed expenses total $664, 000 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 $30 each and that has variable expenses of 524 per unit. If the company can sell 22.000 units of Samoan Delight without incurring any additional fored 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, computes revised margin of safety in dollars and margin of safety percentage Complete this question by entering your answers in the tabs below. Req IA Reg 1B Reg 2A Reg 28 Assuming the sales mix given above, prepare a contribution format income statement showing both dollar and percent columns for e for the company as a whole. Island Novelties, Inc. Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount Amount Total Amount % % 019 95 % 0% 5 $ 0% 0 Req 18> Assuming the sales mix given above, 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 (1.60.1234 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 The company has developed a new product called Samoan Delight that sells for $30 each and that has vanable expenses of $24 per of Samoan Delight without incurring any additional fixed expenses. Prepare a revised contribution format income statement that inclue the other two products does not change. (Round your "Percentage" answers to 1 decimal place (i.e 0.1234 should be entered as 123 Island Novelties, Inc. Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount Amount % Total Samoan Delight Amount % Amount 5 % % % % % %6 % 00% $ 0 0.0% 5 0 0.0% 0 00% 0 The company has developed a new product called Samoan Delight that sells for $30 each and that has variable expenses of $24 per unit. If the company can sell 22,000 units of Samoan Delight without incurring any additional foed 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" fina! answer to 1 decimal place (1.e 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
