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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-that are widely used
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: Selling price per racket Variable expenses per racket: Production Selling (5% of selling price) Standard $ 70.00 Deluxe $106.00 Pro $160.00 $ 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 $ 160,000 140,000 90,000 $390,000 Sales, in units, over the past two months have been as follows: April May Required: Deluxe Pro 5,000 Total 8,000 Standard 2,000 1,000 8,000 1,000 3,000 12,000 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 $24,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $24,000? 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. Req 1A Req 18 Req 3 Req 4 Req 5 Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Variable expenses: Topper Sports, Incorporated Income Statement for April Standard Deluxe Pro Total Amount % Amount % Amount % Amount 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 Req 1A Req 18 > ook Req 1A Req 1B Req 31 Req 4 Req 5 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Topper Sports, Incorporated Income Statement for May Standard Deluxe Pro Total Amount % Amount % Amount % Amount % 0 0 0 0 0 0 0 0.0 $ 0 0 $ 0 $ 0 0 $ 0 0.0 0 $ 0 Req 1A Req 1B Req 3 Req 4 Req 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 this question by entering your answers in the tabs below. Req 1A Req 18 Req 3 Req 4 Req 5 Assume that sales of the Standard racket increase by $24,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $24,000? Do not prepare income statements; use the incremental analysis approach in determining your answer. Effect on Net operating income Standard Pro
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