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. Hawaiian Fantasy $ 15 Tahitian Joy $100 $9 20,000 $ 20 5,000 Fixed expenses total $475,800 per year. Number of units sold annually. 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 $5 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. 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, Incorporated Contribution Income Statement Sales Hawaiian Fantasy Amount % Tahitian Joy Total Amount % Amount % Variable expenses Contribution margin $ 0 0 $ 0 0 + 0 0 Fixed expenses Net operating income $ 0 Ren 14 Reg 1B 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 (i.e 0.1234 should be entered as 12.3).) Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage % Island Novelties, Incorporated Contribution Income Statement Tahitian Joy Hawaiian Fantasy Amount % Amount Samoan Delight Total % Amount % Amount % $ 0 0.0 $ 0 0.0 $ 0 0.0 0 0.0 S 0 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