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Topper Sports, Incorporated, produces high - quality sports equipment. The company's Racket Division manufactures three tennis rackets - the Standard, the Deluxe, and the Pro
Topper Sports, Incorporated, produces highquality 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:
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:
Required:
a Prepare contribution format income statements for April.
b Prepare contribution format income statements for May.
Compute the Racket Division's breakeven point in dollar sales for April.
Would the breakeven 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 $ What would be the effect on net operating income? What would be
the effect if Pro racket sales increased by $ 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.
Assume that sales of the Standard racket increase by $ What would be the effect on net operating income? What
would be the effect if Pro racket sales increased by $ Do not prepare income statements; use the incremental analysis
approach in determining your answer.
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