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 Pro-that are widely used in amateur play. Selected information on the rackets is given below: Standard $ 50.00 Deluxe $ 75.00 Pro $ 100.00 Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) $ 28.00 $ 2.50 $ 33.00 $ 3.75 $ 35.00 $ 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 Per Month $ 126,000 106,000 56,000 $ 288,000 Total Sales, in units, over the past two months have been as follows: April May Standard Deluxe 2,000 1,000 8,000 1,000 Pro 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 $20,600. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,600? Do not prepare income statements; use the incremental analysis approach in determining your answer. Req 1A Reg 1B Req3 Req 4 Req 5 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for April Deluxe % Amount % Standard Total Pro Amount Amount % Amount % Variable expenses: Total variable expenses 0 0 0 0 0 0 0 0 0.0 0.0 $ 0 0 $ 0 0 $ 0 $ 0 Fixed expenses: Total fixed expenses 0 0 Reg 1A Reg 1B > Req 1A Req 1B Req 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 % Amount % Pro Standard Amount Total Amount Amount % % Variable expenses: Total variable expenses 0 0 0 0 0 0 0 0 0.0 0.0 $ 0 $ 0 0 $ 0 0 $ 0 Fixed expenses: Total fixed expenses 0 0 Reg 1A Req3 Req 1A Req 1B Req 3 Req 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 Req 1A Req 1B 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 Lower Req 1A Req 1B Req 3 Reg 4 Reg 5 Assume that sales of the Standard racket increase by $20,600. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,600? Do not prepare income statements; use the incremental analysis approach in determining your answer. Standard Pro Effect on Net operating income