Puleva Milenario SA, a company located in Toledo, Spain, manufactures and sells two models of luxuriously finished cutleryAlvaro and Bazan. Present revenue, cost, and unit sales data for the two products appear below. All currency amounts are stated in terms of euros, which are indicated by the symbol .

	Alvaro			Bazan
Selling price per unit		4.30			6.45
Variable expenses per unit		2.58			1.29
Number of units sold monthly		210	units		84	units

Fixed expenses are 550 per month.

Required:
1.	Assuming the sales mix above, do the following:

a.	Prepare a contribution format income statement showing both euro and percent columns for each product and for the company as a whole. (Input all amounts as positive values except losses which should be indicated by minus sign.Round your euro answers to 2 decimal places. )

Alvaro

Bazan

Total

		%		%		%
(Click to select)SalesFixed expensesContribution marginVariable expensesNet operating income (loss)
(Click to select)Fixed expensesContribution marginNet operating income (loss)Variable expensesSales
(Click to select)Fixed expensesVariable expensesSalesContribution marginNet operating income (loss)
(Click to select)Variable expensesFixed expensesNet operating income (loss)SalesContribution margin
(Click to select)Fixed expensesContribution marginVariable expensesSalesNet operating income (loss)

b.	Compute the break-even point in euros for the company as a whole and the margin of safety in both euros and percent of sales. (Round your intermediate calculations and final answers to 2 decimal places.)

Break-even point in euros
Margin of safety in euros
Margin of safety percentage	%

2.	The company has developed another product, Cano, that the company plans to sell for 8.60 each. At this price, the company expects to sell 42 units per month of the product. The variable expense would be 6.45 per unit. The companys fixed expenses would not change.

a.

Prepare another contribution format income statement, including sales of Cano (sales of the other two products would not change). (Round your euro answers to 2 decimal places and percentages to the nearest whole percent. Input all amounts as positive values except losses which should be indicated by minus sign.)

Alvaro

Bazan

Cano

Total

		%		%		%		%
(Click to select)Net operating income (loss)SalesVariable expensesFixed expensesContribution margin
(Click to select)Variable expensesNet operating income (loss)Fixed expensesSalesContribution margin
(Click to select)Contribution marginFixed expensesNet operating income (loss)SalesVariable expenses
(Click to select)Contribution marginSalesVariable expensesFixed expensesNet operating income (loss)
(Click to select)Contribution marginSalesVariable expensesNet operating income (loss)Fixed expenses

b.	Compute the companys new break-even point in euros for the company as a whole and the new margin of safety in both euros and percent of sales. (Round your intermediate calculations and final answers to 2 decimal places.)

Break-even point in euros
Margin of safety in euros
Margin of safety percentage	%