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 $80, and the Deluxe set sells for $95. The variable expenses associated with each set are given below. Variable production costs Sales commissions (250 of sales price) Standard $ 25.00 $ 20.00 Deluxe $ 40.00 $ 23.75 The company's fixed expenses each month are: Advertising Depreciation Administrative $ 115,000 $ 24,700 $ 68,000 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 5,000 2,000 Deluxe 3,000 6,000 Total 8,000 8,000 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-b. Would the break-even point in May be higher or lower than the break-even point in April? Answer is complete but not entirely correct. Reg 1A Reg 1B Reg 3A Reg 3B Prepare contribution format income statement 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 Total Standard Deluxe % % % Amount IS 400,000 Amount IS 265,000 Amount IS 685.000 Sales 58.4 X % 41.6 % X > 100.0 Variable expenses: Production Sales commission 125,000 100,000 51.0 X % 58.4 X % % 120,000 71,250 SIS 49.0 X % 41.6 X % 245,000 171,250 100.0 X % 100.0 X % % % % Total variable expenses 109.4 % 191,250 90.6 % 200.0 % 225,000 IS 175,000 416,250 S 268,750 (51.0) S 93,750 (49.0) (100.0) % Contribution margin Fixed expenses: Advertising Depreciation Administrative OOO 115,000 24,700 68,000 Total fixed expenses 207,700 S 61,050 > Net operating income Req 1A Req 1B > Req 1A Reg 1B Reg 3A Reg 3B Prepare contribution format income statement for May. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Total Carbex, Inc. Income Statement For May Standard Deluxe Amount % Amount % IS 21.9 X % 160,000 78.1 570,000 % Sales Amount IS 730,000 % 100.0 % Variable expenses: Production Sales commission % 50,000 40,000 17.2 % 21.9 X % % 240,000 142,500 322 78.1 290,000 182,500 % 100.0 X % 100.0 X % % % % Total variable expenses 90,000 39.1 % 160.3 % 200.0 % 382,500 IS 187,500 472,500 S 257,500 Contribution margin $ 70,000 (172) % (822) % (1000) % Fixed expenses Advertising Depreciation Administrative 115,000 24,700 68,000 Total fixed expenses 207,700 $ 49,800 > Net operating income Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 3A Reg 38 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 s 207,700