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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 $74, and the Deluxe set sells for $89. The variable expenses associated with each set are given below. Variable production costs Sales commissions (221 of sales price) Standard $ 22.00 $ 16.28 Deluxe $ 37.00 $ 19.58 The company's fixed expenses each month are: Advertising Depreciation Administrative $ 112,000 $ 23,800 $ 66,500 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 month ---May-are down substantially from April , Sales, in sets, for the last two months are given below: Standard Deluxe Total April 4,700 2,700 7,400 Hay 1,700 5,700 7.400 Required: 1-a. Prepare contribution format income statement for April 1-b. Prepare contribution format Income statement for May 3-a. Compute the break-even point in dollar sales for April. 3-6. 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 Reg 1B Req 3A Req 3B Prepare contribution format income statement for April. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 shou as 12.3).) Carbex, Inc. Income Statement For April Standard Deluxe Amount Amount % $ 347.800 0.01% $ 240,300 Sales Total Amount % $ 588,100 % % Variable expenses Production Sales commission % 103.400 76,516 % 99.900 52,866 % % 203,300 129,382 % % % % % % % % 179,916 $ 167.884 0.0 % 0.0% 152.766 $ 87,534 0.0 % 0.01% 332,682 $ 255,418 0.0 % 0.0 % Total variable expenses Contribution margin Fixed expenses Advertising Depreciation 'Administrative 112,000 23,800 66,500 Total fixed expenses Net operating income 202,300 $ 53.118

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