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 tennis rackets-the Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected infor on the rackets is given below: Deluxe $ 75.00 Pro $100.00 Selling price per racket Variable expenses per racket: Production Selling (58 of selling price) Standard $ 50.00 $ 28.00 $ 2.50 $ 33.00 $ 35.00 $ 3.75 $ 5.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed co Fixed production costs Advertising expense Administrative salaries Total Per Month $ 128,000 108,000 58,000 $ 294,000 Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 2,000 1,000 5,000 8,000 8,000 1,000 3,000 12,000 May 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 $20,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,800? 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. Req 1A Req 1B Reg 3 Req 4 Reqs Pro Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Inc. Income Statement for April Standard Deluxe Amount Amount Amount % 2,000 % % Variable expenses: Production 56,000 % % Selling 20,000 % % % % % % uestion by entering your answers in the tabs below. 29 1B Req3 Req 4 Reg 5 n format income statements for May. (Round "Total percent" answers to 1 decimal place) Topper Sports, Inc. Income Statement for May Standard Pro Total Deluxe Amount % Amount % Amount % Amount % % % % % % % % % % % % % % % % 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 $20,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,800? 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. Req 1A Reg 1B Reg 3 Reg 4 Reg 5 Compute the Racket Division's break-even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place and final answer to the nearest whole dollar.) Break-even point in dollar sales Prepare 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 $20,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,800? 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. Req 1A Reg 18 Reg 3 Reg 4 Reg 5 Whether the break-even point would be higher or lower with May's sales mix than with April's sales mix? Higher O Lower 1-5. 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 $20,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,800? 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. Req 1A Reg 1B Reg 3 Reg 4 Reqs Assume that sales of the Standard racket increase by $20,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,800? Do not prepare income statements; use the incremental ana approach in determining your answer. Standard Pro Effect on Net operating Income