Island Novelties, Incorporated, of Palau makes two products$-$Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable Req $1$B

Req $2$A

Req $2B$

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 $12,000$ 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 $0\mathrm{.}1234$ should be entered as $12\mathrm{.}3).)$

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$\backslash$table$[[$Island Novelties, Incorporated$],[$Contribution Income Statement$],[,,$Hawailan Fantasy,Tahitian Joy,Samoan Delight,Total$],[,,$Amount,$\%,$Amount,$\%,$Amount,$\%,$Amount,$\%],[$Sales$,($v$),\backslash$table$[[$$$1,560,000]],52\mathrm{.}0\backslash$times $,\backslash$table$[[$$$840,000]],28\mathrm{.}0\backslash$times $,$$$600,000$vv$,20\mathrm{.}0\backslash$times $,$$$3,000,000,100\mathrm{.}0],[$Variable expenses,$2,936,000,31\mathrm{.}2\backslash$times $,168,000,5\mathrm{.}6\backslash$times $,480,000,16\mathrm{.}0\backslash$times $,1,584,000,52\mathrm{.}8],[$Contribution margin,V$,$$$624,000,20\mathrm{.}8,\backslash$table$[[$$$672,000]],22\mathrm{.}4,$$$120,000,4\mathrm{.}0,1,416,000,47\mathrm{.}2]]$

expense per unit and annual sales volume are as follows:

Fixed expenses total $$907,200$ per year.

Required:

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.

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 $12,000$ 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 company's revised break$-$even point in dollar sales. Also, compute its revised margin of safety in dollars and margin

of safety percentage.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

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.

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