Problem $5-27($Algo$)$ Sales Mix; Break$-$Even Analysis; Margin of Safety $[$LO$5-7,$ LO$5-9]$

Ialand Novelties, Incorporated, of Palau makes two products$-$Hawaian Fintersy and Tahitian Joy. Each product's selling price, variable expense per unit and arnud sales volume are as followt:

$6$a$.3464$

$\backslash$table$[[,$Haxalian Fantawy,Tahitian Jay$],[$Setiling price per unit,$512,5184],[$Variable expense per unit,$54,525],[$Number of umits wold annually,,$5\mathrm{.}189]]$

Fived expenses total $$448900$ per year

Aequired:

Assuming the sales mix given above, do the lollowing

a$.$ Prepare a contribution format income stabement showing boen dolar and percert columess for each product and for the company as a whole.

b$.$ Compune the eompaty's break$-$even point in dollor sales. Also, compute is morgin of safety in follirs and its margin of safety percentage.

The company has developed a new product called Samban Delight that sets for $$50$ each and that has variable expenses of $$40$ per unit. It the company can sell $15,000$ units of $ amoan Dellght meltout incurring any additional fired expenser:

a$.$ Prepare a revised contribution format income statemert ther includes Sampan Delight. Assume that sales of the other two products does not change.

b$.$ Compute the company's revised break$-$even poirt in dollar sales. Asa, compute its nevised mangin of safety in tothes and margin of safety percentage.

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

Req $14$

Aeq $1$B

The company has developed a new product called Samoan Delight Eat selis for $590$ anch and that has variable expenses or company can iell $15,000$ units of Samoan Delight without incurrise aty addtional fiapd expensest Prepare a revided contrit place $($Le$90\mathrm{.}1234$ should be entered as $12\mathrm{.}31)$

Problem $5-27($Algo$)$ Sales Mix; Break$-$Even Analysis; Margin of Safety $[$LO$5-7,$ LO$5-9]$

Island Novelties, Incorporated, 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:

$\backslash$table$[[,$Hawaiian Fantasy,Tahitian Joy$],[$Selling price per unit,$$12,$$$100$