Las Cruces SA, a company located in Barcelona, Spain, manufactures and sells two models of luxuriously finished cutleryHeritage and Gorham. Present revenue, cost, and unit sales data for the two products appear below. All currency amounts are stated in terms of euros, which are indicated by the symbol .

	Heritage			Gorham
Selling price per unit		5.40			8.10
Variable expenses per unit		3.24			1.62
Number of units sold monthly		250	units		100	units

Fixed expenses are 560 per month.

Required:
1.	Assuming the sales mix above, do the following:

a.

Prepare a contribution format income statement showing both euro and percent columns for each product and for the company as a whole.

b.

Compute the break-even point in euros for the company as a whole and the margin of safety in both euros and percent of sales. (Round your intermediate calculations and final answers to 2 decimal places.)

2.	The company has developed another product, Cano, that the company plans to sell for 10.80 each. At this price, the company expects to sell 50 units per month of the product. The variable expense would be 8.10 per unit. The companys fixed expenses would not change.

a.

Prepare another contribution format income statement, including sales of Cano (sales of the other two products would not change).

b.	Compute the companys new break-even point in euros for the company as a whole and the new margin of safety in both euros and percent of sales. (Round your intermediate calculations and final answers to 2 decimal places.)