Problem 5-27 Sales Mix; Break-Even Analysis; Margin of Safety (LO5-7, LO5-9) Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Tahitian Doy Hawaiian Fantasy $ 20 $ 13 15, eee Selling price per unit Variable expense per unit Number of units sold annually $ 125 Se Slee fixed expenses total $325,000 per year. Required: 1. Assunting 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 cald Samoan Delight that sells for $45 each and that has variable expenses of $27 per unit. If the company can sell 12,500 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 dollar sales. Also, compute its revised margin of safety in dollars and margin of safety percentage