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: Standard Deluxe Pro Selling price per racket $ 45.00 $ 70.00 $ 100.00 Variable expenses per racket: Production $ 27.00 $ 35.00 $36.00 Selling (54 of selling price) $ 2.25 $ 3.50 $5.00 All sales are made through the company's own retail outlets. The Rocket Division hos the following fixed costs: Fixed production costs Advertising expense Administrative salaries Total Per Month $ 138,000 118,000 68,000 $ 324,000 Sales, in units, over the past two months have been as follows: April May Standard Deluxe 2,000 1,000 8, eee 1,000 Pro 5,000 3,000 Total 8,000 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 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 of the Standard racket increase by $21,800. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $21,800? Do not prepare income statements; use the incremental analysis approach in determining your answer. Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for April Deluxe Pro Standard Amount Total Amount Amount % Amount Variable expenses Total variable expenses Fixed expenses Total foxed expenses Reg 18> Topper Sports, Incorporated Income Statement for May Deluxe Amount % Pro Total Standard Amount Amount Announ Variable expenses Total variable expenses Fixed expenses Total fixed expenses Ren 1A Reg 3 > 11 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 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 of the Standard racket increase by $21,800, What would be the effect on net operating income? What would be the effectif Pro racket sales increased by $21,800? Do not prepare income statements, use the incremental analysis approach in determining your answer. BOOK Complete this question by entering your answers in the tabs below. Reg 4 Reg 5 Reg 1B Reg 3 Reg 1A 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 Reg4 >
