Problem 5-27 Sales Mix; Break-Even Analysis; Margin of Safety (L05-7, LO5-9) Island Novelties, Inc., of Palau makes two products-Hawalian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Hawaiian Tahitian Fantasy Jay Selling price per unit 30 $ 140 Variable expense per unit 15 35 Number of units sold annually 28,000 6,500 $ Fixed expenses total $850,500 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 margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $60 each and that has variable expenses of $48 per unit. If the company can sell 21000 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. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Reg 28 The company has developed a new product called Samoan Delight that sells for $60 each and that has variable Samoan Delight without incurring any additional fixed expenses: Prepare a revised contribution format incomes other two products does not change. (Round your "Percentage" answers to 1 decimal place (ie 0.1234 should bu a. Prepare a contribution format income statement showing and percen 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 $60 each and that has variable expenses of $48 per unit. If the company can sell 21,000 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Reg 28 The company has developed a new product called Samoan Delight that sells for $60 each and that has variable e Samoan Delight without incurring any additional fixed expenses: Prepare a revised contribution format income si other two products does not change. (Round your "Percentage answers to 1 decimal place (i.e 0.1234 should be Island Novelties, Inc., Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount Amount % Samoan Delight Amount % % % % % 0 0.0 % 0 0.0 % 0 0.0 % Reg 13 Reg 20 > Net operating income ompute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars its margin of safety percentage. le company has developed a new product called Sampan Delight that sells for $60 each and that has ible expenses of $48 per unit. If the company can sell 21,000 units of Samoan Delight without rring any additional fixed expenses: epare a revised contribution format income statement that includes Samoan Delight. Assume that 5 of the other two products does not change. ompute the company's revised break-even point in dollar sales. Also, compute its revised margin of ty in dollars and margin of safety percentage. omplete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B suming the sales mix given in the question Information, do the following: Prepare a contribution format income stat cent columns for each product and for the company as a whole. Island Novelties, Inc., Contribution Income Statement Hawaiian Fantasy Tahitian Joy Total Amount Amount Amount % % % % % 0 0 % $ % 0 % 0 % 0 0 Reg 10 > ariable expe curring any additional fixed expenses: . Prepare a revised contribution format income statement that incl sales of the other two products does not change. 5. Compute the company's revised break-even point in dollar sales safety in dollars and margin of safety percentage. Complete this question by entering your answers in the tabs Req 1A Req 1B Req 2A Reg 2B The company has developed a new product called Samoan Delight tha $48 per unit. If the company can sell 21,000 units of Samoan Delight Compute the company's revised break-even point in dollar sales. Also, margin of safety percentage. (Do not round your intermediate calculat answer to 1 decimal place (i.e 0.1234 should be entered as 12.3). Rot dollar.) Break-even point in dollar sales Margin of safety in dollars Margin of safety percentage