Problem 5-28 (Algo) Sales Mix; Multiproduct Break-Even Analysis (LO5-9] Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Division manufactures three tennis racketsthe Standard, the Deluxe, and the Prothat are widely used in amateur play. Selected information on the rackets is given below: Pro Standard $ 40.00 Deluxe $ 60.00 $ 90.00 Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) $ 22.00 $ 2.00 $ 27.00 $ 3.00 $ 31.50 $ 4.50 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 $ 124,000 104,000 54,000 $ 282,000 Sales, in units, over the past two months have been as follows: Deluxe April May Standard 2,000 8,000 1,000 1,000 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. 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 $20,400. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,400? Do not prepare income statements, use the incremental analysis approach in determining your answer. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 3 Req 4 Reg 5 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for April Deluxe Standard Pro Total Amount % Amount % % Amount 100$ 60,000 % Amount 100$ 590,000 Sales $ 80,000 100$ 450,000 100 Variable expenses 157,500 35 38.7 Production Selling OO 44,000 4,000 55 5 olo 27,000 3,000 45 5 226,500 X 29,500 22.500 5 5.0 Total variable expenses 60 30,000 50 40 43.7 48,000 32,000 180,000 270,000 258,000 $ 332,000 $ 40 $ 30,000 50 $ 60 56.3 Fixed expenses 124,000 Production Advertising Administrative OOO 104,000 54,000 Total fixed expenses 282,000 50,000 $ Req 1A Req 1B Reg 3 Reg 4 Req 5 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for May Deluxe Standard Pro Total Amount % Amount % Amount % Amount % Sales IS 320,000 100$ 60,000 100$ 270,000 100$ 650,000 100 Variable expenses 45 35 Production Selling 176,000 16,000 55 5 27,000 3,000 94,500 13,500 297,500 32,500 45.8 5.0 5 5 Total variable expenses 192,000 60 50 40 330,000 50.8 30,000 $ 30,000 108,000 $ 162,000 $ 128,000 40 50 60 $ 320,000 49.2 Fixed expenses Production Advertising Administrative 124,000 104,000 54,000 Total fixed expenses 282,000 38,000 Net operating income $