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.