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 $88, and the Deluxe set sells for $103. The variable expenses associated with each set are given below.

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 $88, and the Deluxe set sells for $103. The variable expenses associated with each set are given below. Variable production costs Sales commissions (29% of sales price) Standard $ 29.00 $ 25.52 Deluxe $ 44.00 $ 29.87 The company's fixed expenses each month are: Advertising Depreciation Administrative $ 119,000 $ 25,900 $ 70,000 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: April May Standard 5,400 2,400 Deluxe 3,400 6,400 Total 8,800 8,800 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 enter as 12.3).) Carbex, Inc. Income Statement For April Standard Deluxe Total Amount % Amount % Amount % $ 475,200 100% $ 350,200 100% $ 825,400 100.0 % Sales Variable expenses: Production Sales commission 156,600 137,808 149,600 101,558 42.7% 29.01% % 306,200 239,366 37.1% 29.01% 33.0 % 29.01% % % 62.0 % 38.0 % Total variable expenses 294,408 $ 180,792 251,158 $ 99,042 71.7 % 28.3 % 545,566 $ 279,834 % 66.1% 33.9 % Fixed expenses: Advertising Depreciation 119,000 25,900 70,000 Total fixed expenses Net operating income 214,900 $ 64,934 Req 1A Reg 1B > Req 1A Reg 1B Req 3A Req 3B Prepare contribution format income statements for May. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be 12.3).) Carbex, Inc. Income Statement For May Standard Deluxe Amount % Amount % $ 211,200 100% $ 659,200 Total Amount % 100 %$ 870,400 100% Sales Variable expenses: Production 69,600 281,600 351,200 33.0 % % 42.7 % % 29.01% 40.3 % % 29.01% Sales commission 61,248 29.01% 191,168 252,416 % % % Total variable expenses 130,848 $ 80,352 62.0 % 38.0 % 472,768 $ 186,432 71.7 % 603,616 69.3 % 30.7 % 28.3 % $ 266,784 Fixed expenses: Advertising Depreciation Administrative 119,000 25,900 70,000 Total fixed expenses Net operating income 214,900 $ 51,884 Reg 1A Reg >