Problem 6-28 (Algo) Sales Mix; Multiproduct Break-Even Analysis [LO6-9] Topper Sports, Incorporated, 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: Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) Standard $ 55.00 Deluxe $ 86.00 Pro $ 125.00 $ 33.00 $ 2.75 $ 43.00 $ 4.30 $ 45.00 $ 6.25 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month Fixed production costs Advertising expense Administrative salaries Total $ 144,000 124,000 74,000 $ 342,000 Sales, in units, over the past two months have been as follows: April May Required: Standard 2,000 1,000 5,000 8,000 1,000 3,000 Deluxe Pro Total 8,000 12,000 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. Would the break-even point 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 $22,400. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,400? Do not prepare income statements; use the incremental analysis approach in determining your answer.