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: Standard $ 60.00 Deluxe $ 90.00 PEO $100.00 Selling price per racket Variable expenses per racket: Production Selling (5* of selling price) $36.00 $ 3.00 $ 45.00 $ 4.50 $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 $ 134,000 114,000 64,000 $ 312,000 Sales, in units, over the past two months have been as follows: April May Standard Deluxe PEO Total 2,000 1.000 5,000 3,000 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 soles of the Standard racket increase by $21400. What would be the effect on net operating income? What would be the effect if Pro rocket sales increased by $21,4007 Do not prepare income statements, use the incremental analysis approach in determininai vour answer Reg 1A Reg 1B Reg 3 Reg 4 Reg 5 Prepare contribution format income statements for April. (Round Total percent" answers to decimal place) Topper Sports, Inc. Income Statement for April Deluxe Amount % Pro Standard Amount % Total Amount % Amount % % % % Variable expenses % % % % % % % % % % % Total variable expenses 0 016 g 0 0 0 % 0 % 00 00% $ 0 0 % $ 0 $ 0 0% $ 0 Fixed expenses 0 Total fixed expenses $ 0 Reg 1A Req 18 Reg 3 Reg 4 Reg 5 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Topper Sports, Inc. Income Statement for May Deluxe Amount % Pro Total Standard Amount Amount % Amount % % % % Variable expenses * % * *** -- **** % % % 01 0 % 0 OK 0 Total variable expenses 00 0 0 0 0 01% $ 0 5 0 0 $ 0 0.0% Fixed expenses 0 Total fixed expenses 0