Styles Ado CCM produces a variety of hockey equipment. The company's stick division manufactures three hockey sticks -the Standard, the Deluxe and the Pro--that are widely used by amateur players Selected information on the sticks is given below: Standard $40.00 Selling price Variable cost per stick Production Selling (5% of selling price) Delure $60.00 Pro $90.00 22.00 2.00 27.00 3.00 31.50 4.50 All sales are made through the company's own retail stores. The cost records show that the following foxed costs are assignable to the stick division: Production costs Advertising expenses Administrative salaries Total fixed costs Per Month $120,000 100,000 50 000 $270.000 Sales, in units, for the month of April and May are as follows: Pro April May Standard 2,000 8,000 Deluxe 1.000 1.000 5.000 3,000 Required: 1. Using the contribution margin approach, prepare income statements for the month of April and an income statement for the month of May. Your income statements should show separate columns for the three different types of sticks and a final column for the three sticks in total. Do not try to allocate the fixed costs to the different sticks; simply place the fixed expenses in the total column 2. Calculate the contribution margin, in dollars and for the three sticks 3. How can you explain the fact that although total sales increased in May, profits decreased? 4. Calculate CCM's break-even point in dollars for the month of April 5. Assuming that sales of Standard sticks increase by $20.000. how would net income be affected