What is the break even sales in dollars and the Margin of safety in dollars for the company?

Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow:

Hawaiian Fantasy Selling price per unit $ 20 Variable expenses per unit $12 Number of units sold annually 37,000

Tahitian Joy Selling price per unit $150 Variable expenses per unit $ 30 Number of units sold annually 7,400

Fixed expenses total $912,000 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 break-even point in dollar sales for the company as a whole and the margin of safety in both dollars and percent. Round your "Margin of safety percentage" to 1 decimal place (i.e .1234 should be entered as 12.3).