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-th Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackets is given below: Standard $ 40.00 Deluxe $ 60.00 Pro $ 90.00 Selling price per racket Variable expenses per racket: Production Selling (58 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 $ 122,000 102,000 52,000 $ 276,000 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 Total 5,000 8,000 3,000 12,000 Required: 1-a Prenare contribution format income statements for Anril Prey 1 of 2 Next > Administrative salaries Total M2000 52 000 $ 276,000 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 $20,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,200? 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 Req 3 Reg 4 Req 5 Prey 1 of 2 Next > re 18 Maps xi Saved Help S Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Standard Topper Sports, Inc. Income Statement for April Deluxe Amount % % Pro Total Amount % Amount % Amount % % % % Variable expenses: % % % % % % % % % % % % % % % % Total variable expenses 0 0 0 % 0 01% 0 0 % 0 % 0.0 % $ 0 $ 0 0 % $ 0 0 % $ 0 0.0% Fixed expenses: + Total fixed expenses 0 $ 0 DAN Prey 1 of 2 Next > Saved Help Sav .) AACI: ) Topper Sports, Inc. Income Statement for May Deluxe Standard Pro Total Amount % 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 $ 0 Fixed expenses: Total fixed expenses 0 $ 0 Prey 1 of 2 Next > Saved 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 $20,200. What would be the effect on net operating income? What would the effect if Pro racket sales increased by $20,200? 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 Req 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 ints 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 $20,200. What would be the effect on net operating income? WF the effect if Pro racket sales increased by $20,200? Do not prepare income statements; use the incremental analysis app determining your answer. eBook eferences Complete this question by entering your answers in the tabs below. Reg 1A Reg 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 wa A OBOGBO Saved H 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 $20,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,200? 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 Req 1B Req3 Reg 4 Req 5 Assume that sales of the Standard racket increase by $20,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,200? Do not prepare income statements; use the incremental analysis approach in determining your answer. Standard Pro Effect on Net operating income