Island novelties, inc., of palau makes two products-hawaiian fantasy and tahitian joy. each product's selling price, variable expense per unit and annual sales volume are as follows: hawaiian fantasy tahitian joyselling price per unit $20 $100variable expense per unit $11 $35number of units sold annually 27,000 5,400fixed expenses total $456,500 per year. required: 1. assuming the sales mix given above, do the followinga. 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 $75 each and that has variable expenses of $45 per unit. if the company can sell 12,600 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. b. 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.
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Island novelties, inc., of palau makes two products-hawaiian fantasy and tahitian joy. each product'...
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