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 $82, and the Deluxe set sells for $97. The variable expenses associated with each set are given below.

	Standard		Deluxe
Variable production costs	$	26.00	$	41.00
Sales commissions (26% of sales price)	$	21.32	$	25.22

The companys fixed expenses each month are:

Advertising	$	116,000
Depreciation	$	25,000
Administrative	$	68,500

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 monthMayare down substantially from April. Sales, in sets, for the last two months are given below:

	Standard	Deluxe	Total
April	5,100	3,100	8,200
May	2,100	6,100	8,200

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?

Req 1A Reg 1B Req Req 3B Prepare contribution format income statements for April. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Carbex, Inc. Income Statement For April Standard Deluxe Amount % Amount % % Total Amount % Sales % % Variable expenses Production % % % % Sales commission % % % % % % % % 0 0.0 % 0 0.0 % 0 0.0 % 0.0 % $ 0 0.0 % $ 0 0.0 % $ 0 Total variable expenses Contribution margin Fixed expenses Advertising Depreciation Administrative Total fixed expenses 0 Net operating income $ 0 Req 18 Req 1A Reg 1B Req Req 3B Prepare contribution format income statements for May. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Carbex, Inc. Income Statement For May Standard Deluxe Amount % Amount % Total Amount % Sales % % % Variable expenses Production % % % Sales commission % % % % % % % % % 0 0 0 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % $ 0 $ 0 $ 0 0.0 % Total variable expenses Contribution margin Fixed expenses Advertising Depreciation Administrative 0 Total fixed expenses Net operating income $ 0 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req Req 3B Compute the break-even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place and final answer to the nearest whole dollar.) Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req Req 3B Would the break-even point in May be higher or lower than the break-even point in April? O Higher Lower