I need help with this. Thank you!!
Topper Sports, Inc. produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-t Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackets is given below: Standard $ 45.00 Deluxe $ 70.00 Pro $100.00 Selling price per racket Variable expenses per racket: Production Selling (58 of selling price) $ 27.00 $ 2.25 $ 35.00 $ 3.50 $36.00 $ 5.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Fixed production costs Advertising expense Administrative salaries Total Per Month $ 138,000 118,000 68,000 $ 324,000 Sales, in units, over the past two months have been as follows: April May Standard Deluxe 2.000 1.000 8,000 1,000 Pro 5,000 3,000 Total 8,000 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. Whether the break-even point would 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 $21,800. What would be the effect on net operating income? What the effect if Pro racket sales increased by $21,800? Do not prepare income statements; use the incremental analysis approa determining your answer. Complete this question by entering your answers in the tabs below. Req LA Reg 1B Reg 3 Reg 4 Reg 5 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Tonnar Snartine Standard Amount $ 90,000 100% Topper Sports, Inc. Income Statement for April Delusta Amount % $ 70,000 100% Pro Amount $ 500,000 Total Amount $ 660,000 100% $ 100% Sales Variable expenses 361% 54,000 4,500 60% 5% % 35,000 3,500 50% 5% 180,000 25,000 269,000 33,000 40.8% 5.0 51% % RR % % 65 % 35 % 56% 302,000 58,500 31,500 45.8% 38,500 $ 31,500 205,000 295,000 41 % 50% $ 45% $ $ 358,000 54.2 Total variable expenses Contribution margin Fixed expenses Advertising Administrative 0 Total faced expenses traininema 354 > 13