Island 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 joyselling price per unit $20 $100variable expense per unit $11 $35number of units sold annually 27,000 5,400fixed expenses total $456,500 per year. required: 1. assuming the sales mix given above, do the followinga. 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 $75 each and that has variable expenses of $45 per unit. if the company can sell 12,600 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.

Hawaiian        Tahitian  

Fantasy    Joy          TOTAL  

27.000     5.400       32.400     Quantity

$ 20,0      $ 100,0    $ 33,3      Price Unit

$ 540.000$ 540.000$ 1.080.000Total Net Sales

-$ 11,0       -$ 35,0    -$ 15,0      Variable Cost

-$ 297.000-$ 189.000-$ 486.000Variable Cost

$ 9,0        $ 65,0      $ 18,3      Unit Cont Margin

$ 243.000$ 351.000$ 594.000Contributing Margin

45%          65%          55%                 % Contribution

$ 0            $ 0            -$ 456.500Anual Fixed Costs

$ 9,0        $ 65,0      $ 4,2        Unit Segment Margin

$ 243.000$ 351.001$ 137.501Segment Margin

TOTAL    BREAK EVEN POINT

24.900    Quantity

  $ 33,3    Price Unit

$ 829.999Total Net Sales

MARGEN OF SAFETY  

$ 250.001  Sales        23%

Hawaiian FantasyTahitian JoySamoan DelightTOTAL  

27.000   5.400   12.600   45.000  Quantity

$ 20,0$ 100,0$ 75,0$ 45,0Price Unit

$ 540.000$ 540.000$ 945.000  2.025.000  Total Net Sales

-$ 11,0-$ 35,0-$ 45,0-$ 23,4Variable Cost

-$ 297.000-$ 189.000-$ 567.000-1.053.000  Variable Cost

$ 9,0$ 65,0$ 30,0$ 21,6Unit Cont Margin

$ 243.000$ 351.000$ 378.000$ 972.000Contr Margin

45%65%40%48%% Contribution

$ 0$ 0$ 0-$ 456.500Anual Fixed Costs

$ 9,0$ 65,0$ 30,0$ 11,5Unit Segment Margin

$ 243.000$ 351.001$ 378.000$ 515.500Segment Margin

TOTALBREAK EVEN POINT

21.134  Quantity

$ 45,0Price Unit

$ 951.041Total Net Sales

MARGEN OF SAFETY  

$ 1.073.959  Sales     53%  

Explanation:

Hawaiian FantasyTahitian JoyTOTAL  

27.000   5.400   32.400  Quantity

$ 20,0$ 100,0$ 33,3Price Unit

$ 540.000$ 540.000$ 1.080.000Total Net Sales

-$ 11,0-$ 35,0-$ 15,0Variable Cost

-$ 297.000-$ 189.000-$ 486.000Variable Cost

$ 9,0$ 65,0$ 18,3Unit Cont Margin

$ 243.000$ 351.000$ 594.000Contributing Margin

45%65%55%% Contribution

$ 0$ 0-$ 456.500Anual Fixed Costs

$ 9,0$ 65,0$ 4,2Unit Segment Margin

$ 243.000$ 351.001$ 137.501Segment Margin

TOTALBREAK EVEN POINT

24.900  Quantity

$ 33,3Price Unit

$ 829.999Total Net Sales

-$ 15,0Variable Cost

-$ 373.500Variable Cost

$ 18,3Unit Cont Margin

$ 456.499Contributing Margin

55%% Contribution

-$ 456.500Anual Fixed Costs

$ 0,0Unit Segment Margin

$ 0Segment Margin

Hawaiian FantasyTahitian JoySamoan DelightTOTAL  

27.000   5.400   12.600   45.000  Quantity

$ 20,0$ 100,0$ 75,0$ 45,0Price Unit

$ 540.000$ 540.000$ 945.000  2.025.000  Total Net Sales

-$ 11,0-$ 35,0-$ 45,0-$ 23,4Variable Cost

-$ 297.000-$ 189.000-$ 567.000-1.053.000  Variable Cost

$ 9,0$ 65,0$ 30,0$ 21,6Unit Cont Margin

$ 243.000$ 351.000$ 378.000$ 972.000Contr Margin

45%65%40%48%% Contribution

$ 0$ 0$ 0-$ 456.500Anual Fixed Costs

$ 9,0$ 65,0$ 30,0$ 11,5Unit Segment Margin

$ 243.000$ 351.001$ 378.000$ 515.500Segment Margin

TOTALBREAK EVEN POINT

21.134  Quantity

$ 45,0Price Unit

$ 951.041Total Net Sales

-$ 23,4Variable Cost

-$ 494.541Variable Cost

$ 21,6Unit Cont Margin

$ 456.500Contributing Margin

48%% Contribution

-$ 456.500Anual Fixed Costs

$ 0,0Unit Segment Margin

$ 0Segment Margin

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported