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: Fixed expenses total $912.000 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 $40 each and that has variable expenises of $32 per unit. If the company can sell 22,500 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. 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. 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. (Do not round your intermediate calculations. Round your "Margin of safety percentage" final answer to 1 decimal place (i.e 0.1234 should be entered as 12.3). Round your other finat answers to the nearest whole dollar.) The company has developed a new product called Samoan belight that solls for $40 each and that has variable expenses of $32 per unit. if company can sell 22,500 units of Samoan Delight without incurring any additional fixed expenses: Prepare a revised contribution format inc statement that includes Samoan Delight. Assume that sales of the other two products does not change. (Round your "Percentage" answers place (i.e 0.1234 should be entered as 12.3).) The company has developed a new product called Samoan Delight that sells for 540 each and that bas variable expenses of \$32 per unit. If the company can sell 22,500 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. (Oo not round your intemediate calculations, Round your "Margln of gafety percentage' final answer to.1 decimal place (i.e 0.1234 should be entered as 12.3). Round your other final answers to the nearest whole dollar.]
