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plz help Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightwelght gloves for runnersWarm and Cozy. Current
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Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightwelght gloves for runnersWarm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Fixed expenses are $2,340 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.) b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both doliars and percentage of sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.) c. Compute the breakeven polrit in units for the company as a whole and the margin of safety in both units (pairs of gloves) and percentege of sales. (Pound percentage answer to 2 decimal places) d. Compuse how many pain of gloves must be sold overali if the company wants to make an after-tax target profit of 57875 and the tax rate is 30% Assume that the sales mix remains the same as shown above. 2. The company has developed another type of gioves that provide better protection in extreme cold, Toasty, which the company plans to sell for 315.50 per pair At this price, the company expects to sell 500 pairs per month of the product. The variable expense woudd be 512.40 per pair. The company's faxed expenses would not change. 2. Prepare another contribution format income statement, including sales of Toasty (saies of the other fwo products would not changel (Aound percentage answers to 2 decimal ploces.) b. Compute the compary's new break-even point in sales dolars for the company as a whole and the new margin of Safety in both dolars and percentege of sales. (Phernd your break-ven sales to the nearest whole doilar amount and. percentege anwwer to 2 decimal places) Step by Step Solution
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