Topper Sports, Incorporated, 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:

All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs:

Sales, in units, over the past two months have been as follows:

Standard Deluxe Pro

Selling price per racket $ $55\mathrm{.}00$ $ $70\mathrm{.}00$ $ $100\mathrm{.}00$

Variable expenses per racket:

Production $ $33\mathrm{.}00$ $ $35\mathrm{.}00$ $ $36\mathrm{.}00$

Selling $(5\%$ of selling price$)$ $ $2\mathrm{.}75$ $ $3\mathrm{.}50$ $ $5\mathrm{.}00$

All sales are made through the company$$s own retail outlets. The Racket Division has the following fixed costs:

Per Month

Fixed production costs $ $142,000$

Advertising expense $122,000$

Administrative salaries $72,000$

Total $ $336,000$

Sales, in units, over the past two months have been as follows:

Standard Deluxe Pro Total

April $2,0001,0005,0008,000$

May $8,0001,0003,00012,000$Complete this question by entering your answers in the tabs below.

Req $1B$

Req $3$

Req $4$

Req $5$

Prepare contribution format income statements for April. $($Round "Total percent" answers to $1$ decimal place$)$

Reg $1$A

Required:

$1-$a$.$ Prepare contribution format income statements for April.

$1-$b$.$ Prepare contribution format income statements for May.

Compute the Racket Division's break$-$even point in dollar sales for April.

Would the break$-$even point be higher or lower with May's sales mix than with April's sales mix?

Assume that sales of the Standard racket increase by $$22,200.$ What would be the effect on net operating income? What would be

the effect if Pro racket sales increased by $$22,200?$ 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.