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please do all the required as they are a part of the same question Topper Sports, Incorporated produces high-quality Sports equipment. The company's Racket Division
please do all the required as they are a part of the same question
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 $ 50.00 $75.00 $ 100.00 Variable expenses per racket Production $ 28.00 $ 3.00 $ 35.00 Selling (56 of selling price) $ 2.50 $ 3.75 $ 5.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs Per Month Tixed production couts $ 130,000 Advertising expense 110,000 Administrative salaries 60.000 Total $ 300,000 Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 2.000 1.000 5,000 0,000 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. Will 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 $21,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,000? Do not prepare Income statements; use the incremental analysis approach in determining your Step by Step Solution
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