Island Novelties, Incorporated, of Palau makes two products-Hawallan 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 Fixed expenses total $664,000 per year Required: Hawaiian Fantasy $ 20 Tahitian Joy $110 $9 22,000 $ 33 6,000 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 22,000 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 Amount Total Amount % Variable expenses Contribution margin $ 0 0 $ 0 0 0 0 Fixed expenses Net operating income $ 0 Req 1A Req 1B Req 2A Req 2B 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. Note: 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 final answers to the nearest whole dollar. Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage % Show less A < Req 1A Req 2A > Req 1A Req 18 Req 2A Req 281 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 22,000 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. Note: Round your "Percentage" answers to 1 decimal place (i.e 0.1234 should be entered as 12.3). Island Novelties, Incorporated Hawaiian Fantasy Amount Contribution Income Statement Tahitian Joy Samoan Delight Total % Amount % Amount % Amount % Show less A $ 0 0.0 $ 0 0.0 $ 0 0.0 0 0.0 $ 0 Req 1A Req 18 Req 2A Req 28 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 22,000 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. Note: 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 final answers to the nearest whole dollar. Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage %