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The numbers in the table are correct and are needed for the REQ 3 answer. Carbex, Inc., produces cutlery sets out of high-quality wood and

image text in transcribedimage text in transcribedimage text in transcribedThe numbers in the table are correct and are needed for the REQ 3 answer.

Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $94, and the Deluxe set sells for $109. The variable expenses associated with each set are given below. Variable production costs Sales commissions (32% of sales price) Standard $ 32.00 $ 30.08 Deluxe $ 47.00 $ 34.88 The company's fixed expenses each month are: Advertising Depreciation Administrative $ 122,000 $ 26,800 $ 71,500 Mary Parsons, the financial 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 find that even though sales have increased, profits for the current month-May-are down substantially from April. Sales, in sets, for the last two months are given below: April May Standard Deluxe 5,700 3,700 2,700 6,700 Total 9,400 9,400 Required: 1-a. Prepare contribution format income statement for April. 1-b. Prepare contribution format income statement for May. 3-a. Compute the break-even point in dollar sales for April. 3-b. Would the break-even point in May be higher or lower than the break-even point in April? Carbex, Inc. Income Statement For April Standard Deluxe Amount % Amount % $ 535,800 100.0 % $ 403,300 100.0% Total Amount % Sales $ 939,100 100.0 % Variable expenses: Production Sales commission 37.9% 182,400 171,456 34.0% 32.0 % 173,900 129,056 43.1% 32.0% % 356,300 300,512 32.01% % % % % % Total variable expenses 656,812 353,856 $ 181,944 66.0 % 34.0 % 302,956 $ 100,344 75.1 % 24.9 % 69.9 % 30.1 % $ 282,288 Fixed expenses: Advertising Depreciation Administrative 122,000 26,800 71,500 Total fixed expenses 220,300 $ 61,988 Req 1A Req 1B Req 3A Req 3B Compute the break-even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place and final answer to the nearest whole dollar.) Break-even point in dollar sales

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