Island Novelties, Incorporated, 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 $20 $ 9 18,000 Tahitian Joy $ 140 $ 35 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 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 $60 each and that has variable expenses of $48 per unit. If the company can sell 15,000 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. Last year Minden Company introduced a new product and sold 25,800 units of it at a price of $91 per unit. The product's variable expenses are $61 per unit and its fixed expenses are $835,200 per year, Required: 1. What was this product's net operating income (loss) last year? 2. What is the product's break even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its selling price. If the company will only consider price reductions in increments of $2eg. $68. $66, etc.), what is the maximum annual profit that it can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price that you determined in requirement ? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What was this product's net operating income (loss) last year? Required 2 >