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Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow. Selling

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Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow. Selling price per unit Variable expenses per unit Number of units sold annually Hawaiian Tahitian Fantasy Joy $ 20 $ 110 $ 9 $ 33 15,000 7,500 Fixed expenses total $660,000 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. Island Novelties, Inc., Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount % Amount Total Amount % % % el % % % $ 0 0 0% 0 % $ 0 b. Compute the break-even point in dollar sales for the company as a whole and the margin of safety in both dollars and percent. Round your "Margin of safety percentage" to 1 decimal place (i.e 1234 should be entered as 12.3). Break-even point in dollars Margin of safety in dollars Margin of safety percentage % 2. The company has developed a new product to be called Samoan Delight. Assume that the company could sell 25,000 units at $30 each. The variable expenses would be $24 each. The company's fixed expenses would not change. a. Prepare another contribution format income statement, including sales of the Samoan Delight (sales of the other two products would not change). Round your "Percentage" answers to 1 decimal place (i.e .1234 should be entered as 12.3). Island Novelties, Inc. Contribution Income Statement Tahitian Joy Samoan Delight Amount % Amount % Total Hawaiian Fantasy Amount % Amount % % % % % % % 0.01% % 0.01% 0 $ 0 $ 0 0.0 % 0 0.0 % $ 0 b. Compute the company's new break-even point in dollar sales and the new margin of safety in both dollars and percent. Round your dollar amounts to nearest whole number. Round your "Percentage" answer to 1 decimal place (i.e.1234 should be entered as 12.3). Break-even point in dollars Margin of safety in dollars Margin of safety percentage

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