28 Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackets is given below: Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) Standard $ 65.00 Deluxe $ 100.00 Pro $ 145.00 $ 39.00 $ 3.25 $ 42.00 $ 5.00 $ 58.00 $ 7.25 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month Fixed production costs Advertising expense Administrative salaries es Total $ 154,000 134,000 84,000 $ 372,000 Sales, in units, over the past two months have been as follows: April May Standard 2,000 Deluxe Pro 1,000 8,000 1,000 Total 5,000 8,000 3,000 12,000 Required: 1-a. Prepare contribution format income statements for April. 1-b. Prepare contribution format income statements for May. 3. Compute the Racket Division's break-even point in dollar sales for April. 4. Will the break-even point would be higher or lower with May's sales mix than with April's sales mix? 5. Assume that sales of the Standard racket increase by $23,400. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $23,400? Do not prepare income statements; use the incremental analysis approach in determining your answer.