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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 in
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: All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Sales, in units, over the past two months have been as follows: 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. 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 $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. Prepare contribution format income statements for April. (Round "Total percent" answers to 1 decimal place) "repare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) 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.) Would the break-even point be higher or lower with May's sales mix than with April's sales mix? \begin{tabular}{l} \hline Higher \\ \hline Lower \end{tabular} 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
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