Island Novelties, Inc., of Palau makes two productsHawaiian Fantasy and Tahitian Joy. Each products selling price, variable expense per unit, and annual sales volume are as follows:

	Hawaiian Fantasy			Tahitian Joy
Selling price per unit	$	20		$	110
Variable expense per unit	$	9		$	33
Number of units sold annually		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.

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 $24 per unit. If the company can sell 25,000 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 companys revised break-even point in dollar sales. Also, compute its revised margin of safety in dollars and margin of safety percentage.

Req 1A

Req 1B

Req 2A

Req 2B

Assuming the sales mix given above, prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole.

Whats the second percentage on this one after 382,500. Please help

Island Novelties, Inc.,
Contribution Income Statement
	Hawaiian Fantasy			Tahitian Joy			Total
	Amount	%		Amount	%		Amount	%
Sales	$300,000	100	%	$825,000	100	%	$1,125,000	100	%
Variable expenses	135,000	45	%	247,500	30	%	382,500	????	%
Contribution margin	$165,000	55	%	$577,500	70	%	742,500	100	%
Fixed expenses							660,000
Net operating income							$82,500

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 25,000 units of Samoan Delight without incurring any additional fixed expenses. Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the other two products does not change. (Round your "Percentage" answers to 1 decimal place (i.e 0.1234 should be entered as 12.3).)

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What is the percentage on this one too after 982500

Island Novelties, Inc.,
Contribution Income Statement
	Hawaiian Fantasy			Tahitian Joy			Samoan Delight			Total
	Amount	%		Amount	%		Amount	%		Amount	%
Sales	$300,000	100.0	%	$825,000	100.0	%	$750,000	100.0	%	$1,875,000	100.0	%
Variable expenses	135,000	45.0	%	247,500	30.0	%	600,000	80.0	%	982,500	???	%
Contribution margin	$165,000	55.0	%	$577,500	70.0	%	$150,000	20.0	%	892,500	100.0	%
Fixed expenses										660,000
Net operating income										$232,500