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Carbex, Inc.. produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to

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Carbex, Inc.. produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $60, and the Deluxe set sells for $75. The variable expenses associated with each set are given below. Standard Deluxe Variable production costs Sales connissions (15% of sales price) $15.00 $30.00 & 9.00 $11.25 The company's fixed expenses each month are: Advertising Depreciation Administrative 63,000 $105,000 21,700 Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantially from April. Sales, in sets, for the last two months are given below: Standard Deluxe Total 4,000 2,0006,000 1,000 April May 5, 000 6,000 Required: 1-a. Prepare contribution format income statements for April. 1-b. Prepare contribution format income statements for May. 3-a. Compute the break-even point in dollar sales for April. 3-b. Would the break-even point in May be higher or lower than the break-even point in April? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 3A Req 38 Required: 1-a. Prepare Contribution fornmat income statements for April. 1-b. Prepare contribution format income statements for May. 3-a. Compute the break-even point in dollar sales for April. 3-b. Would the break-even point in May be higher or lower than the break-even point in April? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 3A Req 3B Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Carbex, Ino. Income Statement For April Standard Deluxe Total Amount % Amount % Amount % Sales $240,000 100 % 150,000 6 Variable expenses Production 80,000 30,000 60,000 % Sales commission 22,500 15 % 96 6 6 6 % %6 9% Total variable expenses 0e.000 24% o% 82,500 178,500 0.0 % Contribution margin $ 144,000 78% S 67.500 0% S 178.500 0.0 % Foced expenses Advertising Depreciation Administrative Total foed expenses Net operating inoome S 178,500

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