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Island Novelties, Inc., of Palau makes two productsHawaiian Fantasy and Tahitian Joy. Each products selling price, variable expense per unit, and annual sales volume are as follows:

	Hawaiian Fantasy			Tahitian Joy
Selling price per unit	$	20		$	110
Variable expense per unit	$	9		$	33
Number of units sold annually		15,000			7,500

Fixed expenses total $660,000 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 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 $30 each and that has variable expenses of $24 per unit. If the company can sell 25,000 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 companys revised break-even point in dollar sales. Also, compute its revised margin of safety in dollars and margin of safety percentage.

Req 1A

Req 1B

Req 2A

Req 2B

Assuming the sales mix given above, prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole.

Whats the second percentage on this one after 382,500. Please help

	Island Novelties, Inc., Contribution Income Statement Hawaiian Fantasy Tahitian Joy Total Amount % Amount % Amount % Sales $300,000 100 % $825,000 100 % $1,125,000 100 % Variable expenses 135,000 45 % 247,500 30 % 382,500 ???? % Contribution margin $165,000 55 % $577,500 70 % 742,500 100 % Fixed expenses 660,000 Net operating income $82,500

The company has developed a new product called Samoan Delight that sells for $30 each and that has variable expenses of $24 per unit. If the company can sell 25,000 units of Samoan Delight without incurring any additional fixed expenses. Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the other two products does not change. (Round your "Percentage" answers to 1 decimal place (i.e 0.1234 should be entered as 12.3).)

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What is the percentage on this one too after 982500

Island Novelties, Inc., Contribution Income Statement Hawaiian Fantasy Tahitian Joy Samoan Delight Total Amount % Amount % Amount % Amount % Sales $300,000 100.0 % $825,000 100.0 % $750,000 100.0 % $1,875,000 100.0 % Variable expenses 135,000 45.0 % 247,500 30.0 % 600,000 80.0 % 982,500 ??? % Contribution margin $165,000 55.0 % $577,500 70.0 % $150,000 20.0 % 892,500 100.0 % Fixed expenses 660,000 Net operating income $232,500

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