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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 $82, and the Deluxe set sells for $97. The variable expenses associated with each set are given below. Variable produetion costs sales comissions (26 of sales price 26.0 41.00 21.32 25.22 The company's fixed expenses each month are: dvertising Depreciation s 116,000 25.000 68,500 Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the ast year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantialy fom April. Sales, in sets, for the last two months are given below Aprii 2,100 6.100 8,200 -a. Prepare contribution format income statements for April Prepare contrbution Iormat income statements for May. 3-a. Compute the break-even point in dolar sales for April. 3-b. Would the break-even point in May be higher or lower than the break-even point in Apri? 8 command

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