Topper Sports, Incorporated, produces high-quality sports equipment. The companys 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	Deluxe	Pro
Selling price per racket	$ 55.00	$ 70.00	$ 100.00
Variable expenses per racket:
Production	$ 33.00	$ 35.00	$ 36.00
Selling (5% of selling price)	$ 2.75	$ 3.50	$ 5.00

All sales are made through the companys 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	2,000	1,000	5,000	8,000
May	8,000	1,000	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 Divisions break-even point in dollar sales for April.

4: (NO ANSWER REQUIRED)

5. 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. 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.) Req 4 Assume that sales of the Standard racket increase by $2,200. 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