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	$ 40.00	$ 60.00	$ 90.00
Variable expenses per racket:
Production	$ 22.00	$ 27.00	$ 31.50
Selling (5% of selling price)	$ 2.00	$ 3.00	$ 4.50

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

	Per Month
Fixed production costs	$ 122,000
Advertising expense	102,000
Administrative salaries	52,000
Total	$ 276,000

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. Will the break-even point would be higher or lower with Mays sales mix than with Aprils sales mix?

5. Assume that sales of the Standard racket increase by $20,200. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,200? 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.

Req 1A

Req 1B

Req 3

Req 4

Req 5

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

Topper Sports, Incorporated
Income Statement for April
	Standard		Deluxe		Pro		Total
	Amount	%	Amount	%	Amount	%	Amount	%
Variable expenses:
Total variable expenses
Fixed expenses:
Total fixed expenses