Problem 6-27 Sales Mix; Break-Even Analysis; Margin of Safety [LO6-7, LO6-9] 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: Fixed expenses total $812,500 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 $40 each and that has variable expenses of $30 per unit. If the company can sell 24,000 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. Assuming the sales mix given above, prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. Problem 6-27 Sales Mix; Break-Even Analysis; Margin of Safety [LO6-7, LO6-9] 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: Fixed expenses total $812,500 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 $40 each and that has variable expenses of $30 per unit. If the company can sell 24,000 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 breakeven 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. Assuming the sales mix given above, compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. (Do not round your intermediate calculations. Round your "Margin of safety percentage" final answer to 1 decimal place (I.e 0.1234 should be entered as 12.3). Round your other final answers to the nearest whole dollar.) Problem 6-27 Sales Mix; Break-Even Analysis; Margin of Safety [LO6-7, LO6-9] 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: Fixed expenses total $812,500 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 collars and its margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $40 each and that has variable expenses of $30 per unit If the company can sell 24,000 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. The company has developed a new product called Samoan Dellght that sells for $40 each and that has varlable expenses of $30 per unit. If the company can sell 24,000 units of Samoan Delight without incurring any additional fixed expenses. Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the other two products does not change. (Round your "Percentage" answers to 1 decimal place (i.e 0.1234 should be entered as, 12.3).) Problem 6-27 Sales Mix; Break-Even Analysis; Margin of Safety [LO6-7, LO6-9] Island Novelties, Inc., of Palau makes two products - Hawailan Fantasy and Tahitian Joy. Each procuct's selling price, variable expense per unit, and annual sales volume are as follows: Fixed expenses total $812,500 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 procluct 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 $40 each and that has variable expenses of $30 per unit. If the company can sell 24,000 units of 5 amoan Delight without incuring 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 satety in dollars and margin of safety percentage. Complete this question by entering your answers in the tabs below. The company has developed a new product called Samoan Delight that sells for $40 each and that has variable expenses of $30 par unit. If the company can sall 24,000 units of Samoan Dalight without incurring any additional fixad axpanses. Compute the company's revised break even point in dollar sales. Also, compute its revised margin of safety in dollars and margin of safety percentagc. (Do not round your intermediate calculations. Round your "Margin of safety percentage" final answer to 1 decimal place (L.e 0.1234 should be entered a5 12.3). Round your other final answers to the nearest whole dollar.)