Island Novelties, Incorporated, of Palau makes two products-Hawallan Fantasy and Tahitian Joy. Each product's selling price, vartable 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 $ 13 34,000 Tahitian Jay $ 10e $ 30 7,200 Fixed expenses total $651,900 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 marginc safety percentage 2 The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses or $30 per unit. If the company can sell 12,000 units of Samoan Delight without incurring any additional fixed 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 expenses Complete this question by entering your answers in the tabs below. Reg 1A Regie Reg 2A Reg 28 Assuming the sales mix given above, do the following: Prepare a contribution format income statement showing both dollar an percent columns for each product and for the company as a whole. Island Novelties, Incorporated Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount Amount Total Amount $ 0 05 0 0 0 Reg 1B > margin of safety percentage. Complete this question by entering your answers in the tabs below. Reg 1A Req 10 Req 2A Reg 20 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 (0.1234 should be entered as 12.3). Round your other final answers to the nearest whole dollar.) Show less Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage Reg 1A Reg 10 Req 2A Req 20 The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $30 p company can sell 12.000 units of Samoan Delight without incurring any additional fixed expenses: Prepare a revised contribution statement that includes Samoan Delight. Assume that sales of the other two products does not change. (Round your "Percentage! place (ie 0.1234 should be entered as 12.3).) Island Novelties, Incorporated Contribution Income Statement Hawaiian Fantasy Tahitian Joy Total Samoan Delight Amount w Amount 34 Amount Amount 0 0 0.0 0.0 0 0.0 0 5 0.01$ $ 0 Reg 1A Req 10 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 $30 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 Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage 96
