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elijahblaize24
elijahblaize24
24.10.2019 • 
Business

Sland novelties, inc., 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: hawaiian fantasy tahitian joy selling price per unit $ 15 $ 100 variable expense per unit $ 9 $ 20 number of units sold annually 20,000 5,000 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 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. 2. the company has developed a new product called samoan delight that sells for $45 each and that has variable expenses of $36 per unit. if the company can sell 10,000 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.

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