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Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue,

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Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Marm $ 6.00 $ 1.50 3 3,000 units Cozy $ 9.00 $ 4.50 1,000 units Fixed expenses are $2,880 per month Required: 1. Assuming the sales mix above, do the following: e. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Warm Cozy 5 Total % 20 b. Compute the break even point in dollars for the company as a whole and the margin of safety in both doors and percentage of sales (Do not round your intermediate calculations. Round percentage answer to 2 decimal places) Break even said Margnasafn dotars Margin of safety sportage P Compute the break-even point in units for the company as a whole and the margin of safety in both units pairs of gloves) and percentage of sales (Round percentage answer to 2 decimal places.) Megosty in Margin of safety in pa 5 Come how many pairs of gives mest be sold over the company wants to make an after tastof 6.300 de to Assume that the sales remains the same as shown above 10 2. The company has developed another type of gloves that provide better protection extreme cold, Toasty, which the company plans to well for $1700 per per At this price, the company expects to sell 1000 pairs per month of the product the variable pene would be 513 60 per Doll The company's fixed expenses would not change 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 WALIMIS Warm Chry 000 0001 0 0 5 Wir 5 os 0 0001 0 600 s 0.00 5 0 Compute the company's new break even point in dollars for the company as a whole and the new margin of safety in both dollars and percentage of sales. (Round your break even sales to the nearest whole dollar amount and percentage answer to 2 decimal places) Brease dollars Margin of safety in dollars Mergin of safety in percentage

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