Problem 5-27 (continued) b. Dollar sales to break even = Fixed Expenses /CM Ratio Margin of safety in $= Actual sales - BE Sales Margin of safety %= Margin of safety in $ / Actual Sales Problem 5-27 (45 minutes) b. Dollar sales to break even = Fixed Expenses /CM Ratio Margin of safety in $= Actual sales - BE Sales Margin of safety %= Margin of safety in $ / Actual Sales Fixed expenses total $475,800 per year. Required: 1. Assuming the sales mix given above, do the following- a. Prepare a contribution format income statement showing both dollar and pereent colums for each product and for the compuny as a whole. b. Compate the company's breakeven point in dollar sales. Also, compute its margin of safety in dollars and its margin of afety percentage. 2. The company has developed a new product called Samoan Delight that sells for $4$ eacli and that has variable expenses of $36 per unit If the compary can sell 10,000 units of Samoan Delight without incurring any additional fiked expenses a. Prepare a revised contribution format income statement that includes Samoan Delight. Assume that sales of the ather two products does not change. b. Compute the company's revised treakeven point in dollar sales. Also, conpute its revised margin of safery in dollars and margin af safety percentage. 3. The president of the company ecamines your figures and says. 'There's something strange bere: Our fixed expenses haven't changed and you show greater total contribution margin if we add the new product, but you also show our break-even point poing up. With greater has happersed