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Problem 5-28 (Algo) Sales Mix: Multiproduct Break-Even Analysis (LO5-9) Topper Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-the Standard,

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Problem 5-28 (Algo) Sales Mix: Multiproduct Break-Even Analysis (LO5-9) Topper Sports, Inc., 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. Selling price per racket Variable expenses per rackett Production Selling (54 of selling price) Standard Deluxe $ 55.00 $ 86.00 $ 33.00 $43.00 $ 2.75 $ 4.30 Pro $125.00 $ 45.00 $6.25 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month Fixed production costs $ 148,000 Advertising expense 120,000 Administrative salaries 178,000 Total $ 354,000 Sales, in units, over the past two months have been as follows: April May Standard Deluxe Pro Totall 2.ee 1,000 5,000 8, ce 8,000 1,060 3.600 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 $22,800 What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,800? Do not prepare income statements; use the incremental analysis approach in determining your answer. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 3 Req4 Reg 5 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Inc Income Statement for April Deluxe Amount % Pro Standard Amount Total Amount % Amount % % Variable expenses % % % % % % % % % % % D Total variable expenses 0 % 0 019, 0 D 0.01% 0 % 0 % $ 0 0% $ 0 0 % $ 0 $ 0 0.01% Fixed expenses 0 Total fixed expenses $ 0

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