Topper Sports, Inc. produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro--that are widely used in amateur play. Selected information on the rackets is given below. Standard Deluxe Selling price per racket $100.00 Variable expenses per racketi Production $ 27.00 $ 35.00 Selling (58 of selling price) $ 2.25 $ 3.50 $ 5.00 PO $45.00 $ 70.00 $36.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs Fixed production costs Advertising expense Administrative salaries Total Per Month $ 138,000 110,000 68,000 $ 324,000 Sales, in units, over the past two months have been as follows: April May Standard Deluxe 2,000 1,000 8,000 1.000 Pro Total 5,000 8,000 3.000 12.000 Required: 1-a. Prepare contribution format income statements for April 1-b. Prepare contribution format income statements for May, 3. Compute the Racket Division's break-even point in dollar sales for April 4. Will the break-even point would be higher or lower with May's sales mix than with April's sales mix? 5. Assume that soles of the Standard racket Increase by $21,800. What would be the effect on net operating Income? What would be the effect if Pro racket sales increased by $21800? Do not prepare income statements, use the incremental analysis approach in determining your answer Reg LA Reg 1B Reg 3 Reg 4 Reg S Prepare contribution format income statements for April. (Round "Total percent answers to 1 decimal place) Topper Sports, Inc. Income Statement for April Deluxe Amount % % Standard Amount % Pro Total Amount Amount % % Variable expenses % 1% % % 1% % 1% % llllll 96 % %6 Total variable expenses 0 0 0 0 0.0 % 0 % 0% 0 % 0 % 0 % 01% $ 0 $ 0 $ 0 $ 0 0.0 % Fixed expenses 0 Total foed expenses $ 0 Req 18> Reg 1A Reg 1B Req3 Rega Reg 5 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Standard Amount Pro Topper Sports, Inc. Income Statement for May Deluxe Amount % % % Total Amount Amount 56 % % Variable expenses % % % % % % % % % % % 1% % % 00% Total variable expenses 0 0 ol 0 01% 0 % 0 % 0 % OO $ 0 $ 0 0 % $ 0 $ 0.01 Floed expenses Total fled expenses 0 $ 0 Topper Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets--the Standard, the Deluxe, and the Pro--that are widely used in amateur play, Selected information on the rackets is given below: Standard $ 45.00 Deluxe $ 70.00 Pro $100.00 Selling price per racket Variable expenses per racket Production Selling (55 of selling price) $ 27.00 $ 2.25 $ 35.00 $ 3.50 $36.00 $ 5.00 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Fixed production costs Advertising expense Administrative salaries Total Per Month $ 138,000 118,000 68.000 $ 324.000 Sales, in units, over the past two months have been as follows: April May Standard Deluxe 2,000 1,000 3.000 1,000 Pro 5.000 3,000 Total 8,000 12,000 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 in dollar sales for April. 4. Will the break-even point would be higher or lower with May's sales mix than with April's sales mix? 5. Assume that sales of the Standard racket increase by $21,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,800? Do not prepare income statements; use the incremental analysis approach in determining your answer. Complete this question by entering your answers in the tabs below. Red IA Reg 1B Reg 3 Reg 4 Reg 5 Compute the Racket Division's break-even point in dollar sales for April. (Round intermediate percentage calculations to 1 decimal place and final answer to the nearest whole dollar.) Reg 1B Reg 4 > Reg 1A Reg 1B Reg 3 Reg 4 Reg 5 Assume that sales of the Standard racket increase by $21,800. What would be the effect on net operating income? What would be the effect i Pro racket sales increased by $21,800? Do not prepare income statements; use the incremental analysis approach in determining your answer. Standard Pro Effect on Net operating income
