Hi I am unsure what to do I also need to know what is the break even point in dollar sales?
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 Selling price per racket $ 45.00 $ 70.00 $ 100.00 Variable expenses per racket: Production $ 27.00 $ 35.00 $ 36. 00 Selling (5% of selling price) $ 2.25 $ 3.50 $ 5.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month Fixed production costs $ 140, 090 Advertising expense 120, 090 Administrative salaries 70, 000 Total $ 330, 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, 090 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 $22,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,000? Do not prepare income statements; use the incremental analysis approach in determining your answer. Req 1 Req 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $23,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented? (Do not round intermediate calculations.) Net operating income will increase by