Topper Sports, Inc., produces high-quality sports equipment. The company's Racket Division manufactures three tennis racketsthe Standard, the Deluxe, and the Prothat are widely used in amateur play. Selected information on the rackets is given below: Standard $ 70.00 Deluxe $106.00 Pro $ 160.00 Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) $ 42.00 $ 3.50 $ 53.00 $ 5.30 $ 64.00 $ 8.00 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 $ 158,000 138,000 88,000 $ 384,000 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 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 Racket Division's break-even point in dollar sales for April. 4. Whether 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 $23,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $23,800? 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. Reg 1A Reg 1B Reg 3 Reg 4 Req 5 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Standard Topper Sports, Inc. Income Statement for April Deluxe Amount % % Pro Total Amount % Amount % Amount % % % % Variable expenses: % % % % % % % % % % % % % % % Total variable expenses 0 0 0 0 % 0 % 0 % 0 % 0 % 0 % 0.0 % 0.0 % $ 0 $ 0 $ 0 $ 0 Fixed expenses Total fixed expenses 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 3 Reg 4 Reg 5 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Topper Sports, Inc. Income Statement for May Deluxe Amount % Pro Total Standard Amount % Amount % Amount % % % % % Variable expenses % % % % % % % % % % % % % Total variable expenses 0 % 0 % 0 % 0 0 0 0 % 0 % 0 0 % 0 % 0 % 0.0 % 0.0 % $ 0 $ $ $ 0 Fixed expenses Total fixed expenses 0 $ 0 Complete this question by entering your answers in the tabs below. Reg 1A 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.) Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req3 Reg 4 Reg 5 Assume that sales of the Standard racket increase by $23,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $23,800? Do not prepare income statements; use the incremental analysis approach in determining your answer. Standard Pro Net operating income
