Island Novelties, Inc, of Palau makes two products Hawailian Fantasy and Tahitian Joy Each product's...
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Accounting
Island Novelties, Inc, of Palau makes two products Hawailian Fantasy and Tahitian Joy Each product's selling price, expense per unit and annual sales volume are as follows Tahitian3 Selling price per unit Variable expense per unit Number of units sold annually 30$100 21$25 3e,000 Fixed expenses total $652,800 per year 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 doilars and its margin of safety developed a new product called Samoan Delight that sells for $30 each and that has vernable expenses of 2. The company has $18 per unit. If the company can sell 12.500 units of Sa 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 marain of safetv percentace moan Delight without incurring any additional fixed expenses: e b and Wi
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