Thrifty Mobile Inc. produces affordable, high quality mobile smartphone devices targeted to young adults and pre-teens. The company manufactures three models: the Standard, the Deluxe and the Pro. Selected information on the mobile phones is shown below: Standard Deluxe Pro Selling price per smartphone $80.00 $120.00 $180.00 Variable expenses per smartphone: Production $44.00 $54.00 $63.00 Selling (10% of selling price) $8.00 $12.00 $18.00 All sales are made through the company's own retail outlets. The smartphone division has the following fixed costs: Per Month Fixed production costs $90,000 Advertising expense 75,000 Administrative salaries 37,500 Total $202,500Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 1,000 500 2,500 4,000 May 3,?50 ?50 1,500 6,000 Required' a) Using the contribution income statement approach, prepare income statements for April AND May, showing the income statement line items both by product line and in total. Your income statements should include a calculation of contribution margin percentage [Ah]. (fmarks) b] On seeing the income statements in PartA above, the company President exclaimed, \"I cant believe this! We sold 50% more smartphones in May than in April, yet profits went down. It's obvious that costs are out of control in that division." What other explanations can you provide for the decline in operating income? (2mark5) c] Compute the Smartphone division's breakeven point in dollar sales for April. {2marks} d) Has Mays break-even point in dollar sales gone up or down from April's break-even point? Explain why, showing your calculations. {2 marks) e] Assume that sales ofthe Standard smartphone increase by $35,000. What would be the effect on operating income? What would be the effect if sales for the Pro smartphone increased by $35,000? You DO NOT need to show complete income statements when completing this analysis. Assume that fixed costs do not change. {4 marks)