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 Prothat 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 a 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: Pro 5,000 3 and Standard Deluxe 2.000 1,008 0 DO Total 8,000 1 1 April Prey. 2 of 2 Next aka ya 9) 5 sales mix i Ch 2 Fixed production costs Advertising expense Administrative salaries Total $ 126,000 106,000 56,000 $ 288,000 Dints Sales, in units, over the past two months have been as follows: eBook References Standard Deluxe Pro Total April 2,000 1,000 5,000 8,000 May 8,000 1,000 3,000 12,000 W 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. Complete this question by entering your answers in the tabs below. Reg 5 Reg 1A Reg: 1B Reg 3 Reg 4 Reg 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, Inc. Income Statement for April Deluxe Total Pro Amount % Standard Amount % % Amount Amount % % % % % % Variable expenses: % % % % % % % % % % % % % % % % % % % % % Total variable expenses % % Fixed expenses F 2 of 2 Next Reg 1B Next Prey 2 of 2 Ir (3) ENG Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place). Topper Sports, Inc. Income Statement for May Deluxe Total Pro Standard Amount % % Amount Amount % Amount % % % % % Variable expenses: % % % % % % % % % % % % % % % % % % % % Total variable expenses % % % % Fixed expenses w lg your dliswer. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 3 Reg! Req 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