rackets-the Standard, the Deluxe and the Pro--that are widely used in amateur play Selected information on the rackets is given below Standerd $. SS.09 Deluxe $36.00 Pro $ 125.00 Selling price per racket Variable expenses per racket Production Selling (5% of selling price) $ 33.00 5 2.75 $ 43.00 $ 4.30 $ 45.00 56.25 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Fixed production costs Advertising expense Aoninistrative salaries Total Per Month $ 144,090 124,000 74,000 5 342,000 Sales, in units over the past two months have been as follows: April Hoy Standard 2009 3,000 Deluxe 1.000 1,20 Pre 5.000 3, ese Total 8,000 12,860 Required: 1-a Prepare contribution format income statements for April 1.b. Prepare contribution format income statements for May 3. Compute the Rocket Division's break even point n dollar soes for April 4. Will the break-even point would be higher or lower with May's salesmthon with April's selem? 5. Asume that sales of the Standard rocket increase by $22.400 What would be the effect on net operating income? What would be the effectif Pro cacket sales incressed by 5224007 Do not prepare Income statements use the incremental analysis oroach in determining your answer rackets-the Standard, the Deluxe and the Pro--that are widely used in amateur play Selected information on the rackets is given below Standerd $. SS.09 Deluxe $36.00 Pro $ 125.00 Selling price per racket Variable expenses per racket Production Selling (5% of selling price) $ 33.00 5 2.75 $ 43.00 $ 4.30 $ 45.00 56.25 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Fixed production costs Advertising expense Aoninistrative salaries Total Per Month $ 144,090 124,000 74,000 5 342,000 Sales, in units over the past two months have been as follows: April Hoy Standard 2009 3,000 Deluxe 1.000 1,20 Pre 5.000 3, ese Total 8,000 12,860 Required: 1-a Prepare contribution format income statements for April 1.b. Prepare contribution format income statements for May 3. Compute the Rocket Division's break even point n dollar soes for April 4. Will the break-even point would be higher or lower with May's salesmthon with April's selem? 5. Asume that sales of the Standard rocket increase by $22.400 What would be the effect on net operating income? What would be the effectif Pro cacket sales incressed by 5224007 Do not prepare Income statements use the incremental analysis oroach in determining your
