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

	Hawaiian Fantasy			Tahitian Joy
Selling price per unit	$	24		$	100
Variable expenses per unit	$	12		$	30
Number of units sold annually		25,000			6,000

Fixed expenses total $654,000 per year.

1. a- Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole.

1. 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).

2. a- The company has developed a new product to be called Samoan Delight. Assume that the company could sell 20,000 units at $60 each. The variable expenses would be $39 each. The companys fixed expenses would not change

2. b- Compute the companys 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)