Required: 1-a. Prepare contribution format income statements for April. Round "Total percent" answers to 1 decimal place (Le .1234 should be entered as 12.3). 6 Answer is not complete. Sales 515,200 9 385,200 9 900,400 9 Variable expenses: Production 173,600 9 % 165,600 9 339,200 9 % Sales commission 159,712 9 % 119,4120 % 279,124 9 Total variable expenses Fixed expenses: 333,312 181,888 285,012 100,188 618,324 282,076 Advertising 9 121,000 9 Depreciation 0 26,500 0 Administrative 9 71,000 9 218,500 0 Total xed expenses 437,000 Net operating income 9 $ (154,924) 1-b. Prepare contribution format income statements for May. Round "Total percent" answers to 1 decimal place (Le .1234 should be entered as 12.3). 0 Answer is not complete. Sales 0 $ 239.200 0 100 Q % $ 706.200 0 100 0 % $ 945.400 0 100 Q % Variable expenses: Cost of goods sold 9 80,600 0 34 Q % 303,600 0 43 O % 384,200 0 40.6 0 % Sales commission 0 74,152 0 31 Q % 218,922 0 31 0 % 293,074 0 31.0 0 % Total variable expenses 154,752 65 % 522,522 74 % 677,274 71.6 % $ 84,448 35 % $ 183,678 26 % $ 268,126 28.4 % Fixed expenses: 121,000 0 Advertising 9 26.500 9 Depreciation 9 71,000 0 Administrative 9 218,500 9 Total xed expenses 437,000 Net operating income 0 $ (168,874) Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a standard cutlery set and a deluxe set and sells them to retail department stores throughout the country. The standard set sells for $92, and the deluxe set sells for $107. The variable expenses associated with each set are given below. Standard Deluxe Production costs $ 31.00 $ 46.00 Sales commissions (31% of sales price) $ 28.52 $ 33.17 The company's xed expenses each month are: Advertising $121,000 Depreciation $ 26,500 Administrative $ 71,000 Salespersons are paid on a commission basis to encourage them to be aggressive in their sales efforts. Mary Parsons, the nancial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. For this reason, she was shocked to nd that even though sales have increased, prots for the current monthMayare down substantially from April. Sales, in sets, for the last two months are given below: Standard Deluxe Total April 5,600 3,600 9,200 May 2,600 6,600 9,200 1a. Income Statement for April Standard Amount Sales % Deluxe Amount % $515,200 100% $385,200 100% $173,600 $159,712 34% 31% $165,600 $119,412 43% 31% $333,312 $181,888 65% 35% $285,012 $100,188 74% 26% Variable expenses: Production Sales Commission Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation Administration Total fixed expenses Net operating income 1b. Income Statement for May Standard Amount Sales % Deluxe Amount % $239,200 100% $706,200 100% $80,600 $74,152 34% 31% $303,600 $218,922 43% 31% $154,752 $84,448 65% 35% $522,522 $183,678 74% 26% Variable expenses: Production Sales Commission Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation Administration Total fixed expenses Net operating income Break-Even Sales = $770,421.00 % Given Information: Standard Set selling Cost = Deluxe Set selling Cost = $900,400 100.0% Standard Production Cost = $339,200 $279,124 37.7% 31.0% Total Amount Deluxe Production Cost = Sales Commission = Standard Sales Commission = Deluxe Sales Commission = Fixed Expenses: $618,324 $282,076 68.7% 31.3% Advertising = Depreciation = Administrative = $121,000 $26,500 $71,000 Sales Details: $218,500 $63,576 Total Amount % $945,400 100.0% $384,200 $293,074 40.6% 31.0% $677,274 $268,126 71.6% 28.4% $121,000 $26,500 $71,000 $218,500 $49,626 Standard Deluxe April 5600 3600 May 2600 6600 $92 $107 $31 $46 31% $28.52 $33.17 $121,000 $26,500 $71,000 Total 9200 9200 1a. Income Statement for April Standard Amount Sales % Deluxe Amount % $515,200 100% $385,200 100% $173,600 $159,712 34% 31% $165,600 $119,412 43% 31% $333,312 $181,888 65% 35% $285,012 $100,188 74% 26% Variable expenses: Production Sales Commission Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation Administration Total fixed expenses Net operating income 1b. Income Statement for May Standard Amount Sales % Deluxe Amount % $239,200 100% $706,200 100% $80,600 $74,152 34% 31% $303,600 $218,922 43% 31% $154,752 $84,448 65% 35% $522,522 $183,678 74% 26% Variable expenses: Production Sales Commission Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation Administration Total fixed expenses Net operating income Break-Even Sales = $770,421.00 % Given Information: Standard Set selling Cost = Deluxe Set selling Cost = $900,400 100.0% Standard Production Cost = $339,200 $279,124 37.7% 31.0% Total Amount Deluxe Production Cost = Sales Commission = Standard Sales Commission = Deluxe Sales Commission = Fixed Expenses: $618,324 $282,076 68.7% 31.3% Advertising = Depreciation = Administrative = $121,000 $26,500 $71,000 Sales Details: $218,500 $63,576 Total Amount % $945,400 100.0% $384,200 $293,074 40.6% 31.0% $677,274 $268,126 71.6% 28.4% $121,000 $26,500 $71,000 $218,500 $49,626 Standard Deluxe April 5600 3600 May 2600 6600 $92 $107 $31 $46 31% $28.52 $33.17 $121,000 $26,500 $71,000 Total 9200 9200 \f1a. Income Statement for April Standard Amount Sales % Deluxe Amount % $515,200 100% $385,200 100% $173,600 $159,712 34% 31% $165,600 $119,412 43% 31% $333,312 $181,888 65% 35% $285,012 $100,188 74% 26% Variable expenses: Production Sales Commission Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation Administration Total fixed expenses Net operating income 1b. Income Statement for May Standard Amount Sales % Deluxe Amount % $239,200 100% $706,200 100% $80,600 $74,152 34% 31% $303,600 $218,922 43% 31% $154,752 $84,448 65% 35% $522,522 $183,678 74% 26% Variable expenses: Production Sales Commission Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation Administration Total fixed expenses Net operating income Break-Even Sales = $770,421.00 % Given Information: Standard Set selling Cost = Deluxe Set selling Cost = $900,400 100.0% Standard Production Cost = $339,200 $279,124 37.7% 31.0% Total Amount Deluxe Production Cost = Sales Commission = Standard Sales Commission = Deluxe Sales Commission = Fixed Expenses: $618,324 $282,076 68.7% 31.3% Advertising = Depreciation = Administrative = $121,000 $26,500 $71,000 Sales Details: $218,500 $63,576 Total Amount % $945,400 100.0% $384,200 $293,074 40.6% 31.0% $677,274 $268,126 71.6% 28.4% $121,000 $26,500 $71,000 $218,500 $49,626 Standard Deluxe April 5600 3600 May 2600 6600 $92 $107 $31 $46 31% $28.52 $33.17 $121,000 $26,500 $71,000 Total 9200 9200