Contribution format Income Statement | ||||||||
Hawaiian Fantasy | Tahitian Joy | Total | ||||||
Amount | % | Amount | % | Amount | % | |||
Sales | 440000 | 100.00% | 660000 | 100.00% | 1100000 | 100.00% | ||
Variable Expenses | 198000 | 45.00% | 198000 | 30.00% | 396000 | 36.00% | ||
Contribution Margin | 242000 | 55.00% | 462000 | 70.00% | 704000 | 64.00% | ||
Fixed Expenses | 664000 | 60.36% | ||||||
Net Operating Income | 40000 | 3.64% | ||||||
Break even point in dollar sales = Fixed costs/Contribution margin ratio | ||||||||
=664000/64% | ||||||||
i.e. | 1,037,500 | |||||||
Margin of safety = Sales - Break even Sales | 62,500 | |||||||
in % = Margin of Safety in Dollars/Sales | 5.68% | |||||||
Contribution format Income Statement | ||||||||
Hawaiian Fantasy | Tahitian Joy | Samaon Delight | Total | |||||
Amount | % | Amount | % | Amount | % | Amount | % | |
Sales | 440000 | 100.00% | 660000 | 100.00% | 660000 | 100.00% | 1760000 | 100.00% |
Variable Expenses | 198000 | 45.00% | 198000 | 30.00% | 528000 | 80.00% | 924000 | 52.50% |
Contribution Margin | 242000 | 55.00% | 462000 | 70.00% | 132000 | 20.00% | 836000 | 47.50% |
Fixed Expenses | 664000 | 37.73% | ||||||
Net Operating Income | 172000 | 9.77% | ||||||
Break even point | 1,397,894.74 | |||||||
Margin of safety | 362,105.26 | |||||||
in % | 20.57% |
Island Novelties, Inc., of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price,...
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: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Fantasy $ 20 $ 13 Tahitian Joy s 100 $ 30 7,200 34,000 Fixed expenses total $651,900 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
14 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 pints 25 Selling price per unit Variable expense per unit Number of units sold annually Tahitian Joy $ 120 $ 42 7,500 15 Skipped 14,000 eBook Fixed expenses total $580,000 per year. Print References Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format...
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 Joy Selling price per unit Variable expense per unit Number of units sold annually Fixed expenses total $580,000 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...
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 Joy Selling price per unit $ 16 $ 120 Variable expense per unit $ 8 $ 42 Number of units sold annually 24,000 6,400 Fixed expenses total $580,500 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
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: Fantasy Tahitian Joy 12e Selling price per unit Variable expense per unit Number of units sold annually 14, eee 7,500 Required Fixed expenses total $580,000 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...
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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 Tahitian 15 $ 100 Selling price per unit Variable expense per unit 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...
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: Fixed expenses total $448,900 per year. Hawaiian Fantasy Tahitian Joy Selling price per unit $ 12 $ 100 Variable expense per unit $ 6 $ 25 Number of units sold annually 20,000 5,100 Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both...
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: Selling price per unit Variable expense per unit Number of units sold annually Hawaiian Tahitian Fantasy Joy $ 15 $ 100 95 20 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...