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1 Sales Mix; Break-Even Analysis; Margin of Safety Bulltaco, a company located in Spain, Manufactures and sells two models of luxuriously finished cutley-Alvaro and Bazan. Present revenue, cost and unit sales data for the two products appear below. All currency amounts are stated in euros, which are indicated by the symbole Alvaro Bazan 4.00 6.00 Selling price per unit........ Variable expenses per unit.... Number of units sold monthly.. Fixed expenses total 660 per month 2.40 1.20 200 units 80 units 4003 Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both euro and percentage columns for each product and for the company as a whole. (5 marks) b. Compute the break-even point in euros for the company as a whole and the margin of safety in both euros and percentage of sales. (5 marks) 2. The company has developed another product, Cano, that the company plans to sell for 8 each. At this price, the company expects to sell 40 units per month of the product. The variable expense would be 6 per unit. The company's fixed expense would not change. a. Prepare another contribution format income statement, including sales of Cano (sales of the other two products would not change). (5 marks) b. Compute the company's new break-even point in euros for the company as a whole and the new margin of safety in both euros and percentage of sales. (5 marks) 3. The president of the company was puzzled by your analysis. He did not understand why the break-even point has gone up even though there has been no increase in fixed expenses and the addition of the new product has increased the total contribution margin. Explain to the president what has happened. (5 marks) LA