Please Help with the ones that are Wrong with a RED X. everything else is fine. Thank You

Please Help with the ones that are Wrong with a RED X. everything else is fine. Thank You

The answer provided is incorrect.

Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners-Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Warm $5.00 Cozy $7.50 $3.75 $ 1.25 Selling price per pair Variable expenses per pair Number of pairs sold monthly 900 units 300 units Fixed expenses are $2,970 per month. Required: 1. Assuming the sales mix above, do the following: a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) Answer is complete but not entirely correct. WARM HANDS Contribution Income Statement Warm Cozy Total % % % Sales $ 4,500 100.00 50.00 $ 6,750 $ 2.250 1.125 100.00 33.33 Variable expenses 1,125 25.00 50.00 2.250 Contribution margin $ 3,375 75.00 $ 1.125 0.00 4,500 66.67 Fixed expenses 2.970 $ 1,530 Operating income 2. The company has developed another type of gloves that provide better protection in extreme cold, Toasty, which the company plans to sell for $15.50 per pair. At this price, the company expects to sell 300 pairs per month of the product. The variable expense would be $12.40 per pair. The company's fixed expenses would not change. a. Prepare another contribution format income statement, including sales of Toasty (sales of the other two products would not change). (Round percentage answers to 2 decimal places.) Answer is complete and correct. WARM HANDS Contribution Income Statement Warm Cozy Toasty Total % % % % 100 $ 2.250 100.00 $ 4,650 100.00 $ 11,400 100.00 25 1,125 50.00 3,720 80.00 5,970 52.37 Sales $ 4,500 1,125 Variable expenses Contribution margin $ 3,375 75 $ 1.125 50.00 $ 930 20.00 $ 5.430 47.63 Fixed expenses $ 2,970 $ 2,460 Net operating income b. Compute the company's new break-even point in dollars for the company as a whole and the new margin of safety in both dollars and percentage of sales. (Round your break-even sales to the nearest whole dollar amount and percentage answer to 2 decimal places.) Answer is complete but not entirely correct. $ Break-even sales dollars Margin of safety in dollars Margin of safety in percentage 6,236 5,164 X $ 45.30 X %