Island Novelties, Inc., of Palau makes two products-Howallan 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 Havallan Tants $40 3 24 39,000 Tahitian Joy $ 140 328 6,000 Fixed expenses total $907,200 per year. Required: 1. Assuming the sales mix glven 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 fety percentage. 2. The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12,000 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. Renta Reg 18 Reg 2A Reg 26 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 Novelties, inc, Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount Amount Total Amount % % % Fixed expenses total $907,200 per year. Required: 1. Assuming the sales mix glven 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 mergin of safety in dollars and its margin of safety percentage 2. The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12,000 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 LA Reg 1B Reg 2A Reg 28 The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can Samoan Delight without incurring any additional fixed expenses! Prepare a revised contribution format income statement that includes Samoan Delight. Assum other two products does not change. (Round your "Percentage answers to a decimal place (le 0.1234 should be entered as 123).) Island Novostne Contribution Income Statement Hawaiian Fantasy Tahilan Joy Amount Amount Samoan Delhi Amount Total Amount equired: 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 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 percentage. 2. The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expens per unit. If the company can sell 12,000 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 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 of safety percentage Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reeg 28 The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12,000 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. (Do not round your intermediate calculations. Round your "Margin of safety percentage final answer to 1 decimal place (1 0.1234 should be entered as 12,3). Round your other final answers to the nearest whole dollar) Show less Broak-even point in dollar sales Margin of safety in dollars Margin of safety porcentage
