Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work 3 Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro-that

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Check my work 3 Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackets is given below: Standard Deluxe Pro 3.75 Selling price per racket $ 60.00 $ 90.00 $ 100.00 points Variable expenses per racket: Production $ 36.00 $ 45.00 $ 36.00 Selling (5% of selling price) $ 3.00 $ 4.50 $ 5.00 eBook All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Print Per Month References Fixed production costs $ 136,000 Advertising expense 116,000 Administrative salaries 66,090 Total $ 318, 000 Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 2,000 1,000 5,000 8,000 May 8, 000 1,000 3,000 12, 000 Required: 1-a. Prepare contribution format income statements for April. 1-b. Prepare contribution format income statements for May. 3. Compute the Racket Division's break-even point in dollar sales for April. 4. Would the break-even point be higher or lower with May's sales mix than with April's sales mix? 5. Assume that sales of the Standard racket increase by $21,600. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,600? Do not prepare income statements; use the incremental analysis approach in determining your answer.Check my work 3 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 3 Reg 4 Req 5 3.75 points Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for April Book Standard Deluxe Pro Total Amount Amount Amount % Amount Print Sales 100 100 100 100 Variable expenses: Production References Selling Total variable expenses 0 0 O 0 0.0 O Contribution margin 100 $ o S 100 s 0 100.0 Fixed expenses: Production Advertising Administrative Total fixed expenses Net operating income3 Complete this question by entering your answers in the tabs below. Req 1A Req 18 Reg 3 Reg 4 Req 5 3.75 points Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for May Book Standard Deluxe Pro Total Amount Amount Amount Amount % Sales 100 100 100 100 Print Variable expenses: References Selling Total variable expenses 0 0 0 0 0 0 0.0 $ 100 $ 0 100 $ 100 $ 0 100.0 Fixed expenses: Production Advertising Administrative Total fixed expenses Net operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach

Authors: Jeffrey Slater, Mike Deschamps

14th Edition

0134729315, 978-0134729312

More Books

Students also viewed these Accounting questions

Question

Discuss the benefits and drawbacks to the why question ofa client?

Answered: 1 week ago