2023 23 A Sales Mix Break Even Analysis Margin of Safety Island Novelties Inc of Palau makes two products | Assignments Online

2023 23 A Sales Mix Break Even Analysis Margin of Safety Island Novelties Inc of Palau makes two products | Assignments Online

Assignments Online 2023 Business Finance

23- A

Sales Mix; Break-Even Analysis; Margin of Safety

Island Novelties, Inc., of Palau makes two products. Hawaiian Fantasy and Tahitian Joy. Present revenue cost and sales data for the two products follow:

                                                                     Hawaiian                     Tahitian

                                                                      Fantasy                            Joy

 

Selling price per unit………………………….$15                            $100

Variable expenses per unit…………………   ..$9                                $20

Number of unit sold annually ……………….20,000                          5,000

 

 

 

 

 

 

 

 

 

 

 

Fixed expense total $475,800 per year. The Republic of Palau uses the U.S. dollar as its currency.

 

Required

  1. Assuming the sales mix given above, do the following:
    1. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole.
    2. Compute the break-even point in dollar for the company as whole and the margin of safety in both dollars and percent.

   

  1. The company has developed a new product to called Samoan Delight. Assume that the company could sell 10,000 units at $45 each. The variable expense would be $36 each. The company’s fixed expenses would not change.
    1. Prepare another contributions format income statement, including sales of the Samoan Delight (sales of the other two products would not change).
    2. Compute the company’s new break-even point in dollar and the new margin of safety in both dollars and percent.

Assignmentsonline.org help students to solve their assignment in the best possible manner. In the assignment help industry, we are regarded as one of the best helpers for students’ tasks in all subjects. We provide solutions to students from all corners of the world, but the main focus is from students residing in the US, UK, and Australia. Our primary focus is solving student assignments for all subjects and streams.

Place Order NOw

Assignment online is a team of top-class experts whose only goal is to give you the best assignment help service. Follow the link below to order now...

#write essay #research paper