X Island Novelties, Incorporated, of Palau makes two products-Hawalan Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: vallan Tahan Fantasy Joy Selling price per unit $20 $ 125 Variable expense per unit $ 14 525 Number of units sold annually 30.000 5,200 Fixed expenses total $652.400 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 $50 each and that has variable expenses of $40 per unit. If the company can sell 12,500 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 6 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 ences Complete this question by entering your answers in the tabs below. Reg Regn RG 2 Mag 20 mint Complete this quest wycin 1 Reg 14 Reg 18 Reg 2A Reg 20 Bok Assuming the sales mix given above, do the following: Prepare a contribution format Income statement showing both dollar and percent columns for each product and for the company as a whole. AK Island Novelties, Incorporated, Contribution Income Statement Hawaiian Fantasy Tahitian Joy Amount Amount 94 Total Pam Amount 90 References Req 13 > 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 magili of safety percentago Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Red 2A Reg 28 once Assuring the sales mix given above, do the following: Compute the company's break even point in dollar sales. Also compute its margin of safety in dollars and its margin of safety percentage o not round your intermediate calculations Round your "Margin of safety percentage til answer to decoce 24hould be entered 223). Round your other finanswers to the nearest whole dollar Show less Break even point in dollar sales Marge of safety in dollars Margin of safety percentage Reg 1 Reg 13 RA We 20 The company tuis developed a new product called Samoan Delight that sells for so each and that has variable expenses of $40 per unit. If the company.com 2.500 units of Samoan Delight without incuring any additional fixed expensesPrepare a revised contribution format income statement that includes Samoan Delight Assume thot sales of the other two products does not change (Round your "Percentagenwers to decimal placa (0.12 hould be entered a 12.3). Show less Island Novelties, incorporated, Contribution Income statement Hawaiian Fantasy Tahitian Joy Amount Amount Samoan Delight Amount Total Amount Req 10 Req 23 > Complete this question by entering your answers in the tabs below. Req 1A Reg 13 Req 2A Req 28 The company has developed a new product called Samoan Delight that sells for $50 each and that has variable expenses of $40 per unit. If the company can sell 12,500 units of Samoan Delight without incurring any additional fixed expenses 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. (Do not round your intermediate calculations. Round your "Margin of safety percentage final answer to 1 decimal place .0.1234 should be entered as 12.3). Round your other anal answers to the nearest Whole dollar) cos Show less Break even point in dollar sales Margin of safety in dollars Margin of safety percentage
