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Warm Hands, a smal compary based in Prince Edward Island, manufactures and sells two types of lightweight giowes for runners- Warm and Cozy. Current rewenue,

image text in transcribed Warm Hands, a smal compary based in Prince Edward Island, manufactures and sells two types of lightweight giowes for runners- Warm and Cozy. Current rewenue, cost, and unit sales dota for the two products appear below. Food expenses are $3,510 per manth. Required: 1. Assuming the sales mix above, do the follawing: p. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the fompary as a whole. (Rlound percentage answers to 2 declmal places.) b. Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage pf sales. (Do not round your intermediate calculations. Round percentage answer to 2 decimal places.) 1. Compute how many pairs of glowes must be sold averall if the compary wants to make an after-tax target profit of \$14,175 and the fax rate is 30%. Assume that the sales mbx remains the same as shown above. 2. The company has deweloped another type of glowes that provide better protection in extreme cold, Toasty which the company plans to sell for $21.50 per pair. At this price, the company expects to sell 200 pairs per month of the product. The variable expense would be $1720 per paic. The company's foed expenses would not change. p. Prepare another contribution format income statement, including sales of Toasty (sales of the other two products would not change) Round percentage answers to 2 decimal places.) b. Compute the company's new break-even point in sales dollars for the compary as a whole and the new margin of safety in both folars and percentage of sales. (Round your breok-even sales to the nearest whole dollar amount and percentege answer to 2 Heclimal places.)

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