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 Tahitian Joy Selling price per unit $ 20 $ 140 Variable expenses per unit $ 9 $ 35 Number of units sold annually 18,000 6,000

Fixed expenses total $710,700 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 break even point in dollar sales for the compnay as a whole and the margin of safety in both dollars and percent.

Break-even point in dollars: Margin of safety in dollars: argin of safety in percentage: %