Check my work Problem 5-28 Sales Mix; Commission Structure; Multiproduct Break-Even Analysis (LO5-9) 10 points 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. 8 03:22.50 Variable production costs Sales commissions (254 of sales price) Standard $ 25.90 $ 20.00 Deluxe S 40.00 523.75 eBook The company's fixed expenses each month are: Print Advertising Depreciation Administrative $ 115,000 $ 24,700 $ 68,000 References 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 Standard Deluxe 5,000 3,000 2,000 6,000 Total 8,000 8,000 May 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 Req 1B Req 3A Req 3B 10 points Prepare contribution format income statements for April. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be as 12.3).) (8 03:22:31 Carbex, Inc. Income Statement For April Standard Deluxe Amount Amount % Total % Amount eBook % Variable expenses: Print References Total variable expenses 0 0 .0% 0.0 % 0 0 0.0% 0.0 % 0 0 0.0 % 0.0% $ 0 $ $ Fixed expenses: Total fixed expenses $ 0 Req1A Req1B > Req 1A Reg 1B Req Req 3B 10 points Prepare contribution format income statements for May. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be entered a 12.3).) (8 03:22:21 Carbex, Inc. Income Statement For May Standard Deluxe Amount % Amount % Total % Amount eBook % Variable expenses: Print References Total variable expenses 0 0 0.0 % 0.0 % 0 0 0.0 % 0.0 % 0 0 0.0 % 0.0 % $ $ S Fixed expenses: Total fixed expenses $ 0 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 Deluxe 5,000 3,000 2,000 6,000 Total 8,000 8,000 points 8 03:22:15 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? eBook Complete this question by entering your answers in the tabs below. Print Req 1A Req 1B Req Req 3B References 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
