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Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are

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Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Fantasy $ 15 $ 9 20,000 Tahitian Joy $ 100 $ 2e 5,000 Fixed expenses total $475,800 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 $45 each and that has variable expenses of $36 per unit. If the company can sell 10.000 units of Samoan Delight without incurring any additional foed expenses a. Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the other two products does not change Fixed expenses total $475,800 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 $45 each and that has variable expenses of $36 per unit. If the company can sell 10,000 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 two 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 and margin of safety percentage Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Reg 28 Req 1A Req 1B Req ZA 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 Noveltios, Inc Contribution Income Statement Hawalian Fantasy Tahitian Joy Amount Amount % Total Amount % 3 % % % % % % % Req 18 > Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 2A Reg 2B Assuming the sales mix given above, do the following: Compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. (Round your "Margin of safety percentage" to 1 decimal place (1.e 0.1234 should be entered as 12.3).) Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage Req1A Reg 1B Red 2A Reg 28 The company has developed a new product called Samoan Delight that sells for $45 each and that has variable expenses of $36 per unit. If the company Samoan Delight without incurring any additional fixed expenses: Prepare a revised contribution format income statement that includes Samoan Delight. As other two products does not change. (Round your "Percentage answers to 1 decimal place (ie 0.1234 should be entered as 12.3).) Island Novelties, Inc. Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount Amount % % Samoan Delight Amount % Total Amount % N % % % % % moan Delight that sells for $45 each and that has variable expenses of $36 per unit. If the company can sell 10,000 units of expenses: Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the ercentage" answers to 1 decimal place (i.e 0.1234 should be entered as 12.3).) Show less Island Novelties, Inc. Contribution Income Statement Tahitian Joy % Amount % % Samoan Delight Amount % Total Amount % % % % % % le *** % Reg 1A Req 1B Req 2A Reg 2B The company has developed a new product called Samoan Delight that sells for $45 each and that has variable expenses of $36 per unit. If the company can sell 10,000 units of Samoan Delight without incurring any additional fixed 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. (Round Intermediate computations to 1 decimal place.) Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage

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