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:

Standard Deluxe Pro

Selling price per racket $ $40\mathrm{.}00$ $ $60\mathrm{.}00$ $ $90\mathrm{.}00$

Variable expenses per racket:

Production $ $22\mathrm{.}00$ $ $27\mathrm{.}00$ $ $31\mathrm{.}50$

Selling $(5\%$ of selling price$)$ $ $2\mathrm{.}00$ $ $3\mathrm{.}00$ $ $4\mathrm{.}50$

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

Per Month

Fixed production costs $ $120,000$

Advertising expense $100,000$

Administrative salaries $50,000$

Total $ $270,000$

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

Standard Deluxe Pro Total

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

May $8,0001,0003,00012,000$

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.

$4.$ Would the break$-$even point 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 $$20,000.$ What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $$20,000?$ Do not prepare income statements; use the incremental analysis approach in determining your answer.