Topper Sports, Incorporated, produces high-quality 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: Standard Dellme Pro Selling price per racket $ 46.66 $ 66.66 $ 96.66 lIiariable expenses per racket: Production 5 22.66 5 27.06 5 31.56 Selling {595 of selling price) $ 2.66 $ 3.66 $ 4.56 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Per Month Fixed production costs :3 126,666 advertising expense 166,666 ndministrative salaries 56,666 Total $ 216,666 Sales, in units, over the past two months have been as follows: Standard Deluxe Pro Total April 2,666 1,666 5,666 6,666 day 3,666 1,666 3,666 12,666 Required: la. Prepare contribution format income statements for April. lb. Prepare contribution format income statements for May. 3. Compute the Racket Division's break-even point in dollar sales for April. 4. Will the break-even point would be higher or lower with May's sales mix than with April's sales mix? 5. Assume that sales ofthe Standard racket increase by $20,000. What would be the effect on net operating income? lWhat 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. Prepare contribution format income statements for April. Note: Round "Total percent" answers to 1 decimal place Topper Sports, Incorporated Income Statement for April Standard Deluxe Pro Total Amount Amount Amount Amount Sales $ 80,000 100 $ 60,000 100 450,000 100 S 590,000 100 Variable expenses: Production 44,000 55 27,000 45 157,500 35 228,500 38.7 Selling 4,000 5 3,000 5 22,500 5 29,500 5.0 Total variable expenses 48,000 60 30,000 50 180,000 40 258,000 43.7 Contribution margin $ 32,000 40 $ 30,000 50 270,000 60 S 332,000 56.3 Fixed expenses: Production 120,000 Advertising 100,000 Administrative 50,000 Total fixed expenses 270,000 Net operating income 62,000