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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 $60, and the Deluxe set sells for $75. The variable expenses associated with each set are given below.

	Standard		Deluxe
Variable production costs	$	15.00	$	30.00
Sales commissions (15% of sales price)	$	9.00	$	11.25

The companys fixed expenses each month are:

Advertising	$	105,000
Depreciation	$	21,700
Administrative	$	63,000

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 monthMayare down substantially from April. Sales, in sets, for the last two months are given below:

	Standard	Deluxe	Total
April	4,000	2,000	6,000
May	1,000	5,000	6,000

Required:

1-a. Prepare contribution format income statements for April.

1-b. Prepare contribution format income statements for May.

Return to question Answer is not complete Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 3A Req 38 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Carbex, Inc. Income Statement For April Standard Deluxe Total Amount Amount Amount s el 1000% -150,000 240,000 Sales 1000196 390,000 Variable expenses: 60,000 25 % | 60,0000 400% |120,0000 30.80% 36,000 150% | 22.5000 150 % | 58,500 15.00 % Sales commission Total variable expenses Contribution margin Fixed expenses: Advertising 96,000 40 % 82,500 55 % 178,500 45.8 % | 96 |$67,500 45 |% 211,500 144,000 60 54.2 |96 105,000 1,700 63,000 Administrative Total fixed expenses 189,700 Prey 4of4 Next>