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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

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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 amateur play Selected information on the rackets is given below Standard Deluxe Pro Selling price per racket $ 70.00 $106.00 $160.00 Variable expenses per racket: Production $ 42.00 $ 53.00 $ 64.00 Selling (5% of selling price) $ 3.50 $5.30 $ 8.00 All sales are made through the company's own retail outlets The Racket Division has the following fixed costs: Per Month Fixed production costs 5 156,000 Advertising expense 136,000 Administrative salaries 86.000 Total 5 378,000 Sales, in units, over the past two months have been as follows April May Standard 2,000 8,000 Deluxe 1,000 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 $23,600 What would be the effect on net operating income? What would be the effect of Pro racket sales increased by $23.600? 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 % Amount % Standard Pro Total Amount Amount % Amount % Vanable expenses Total variable expenses 0 0 0 0 0 0 0 00 00 $ 0 0 $ 0 0 $ 0 0$ 0 Fored expenses Total foxed expenses 0 $ 0 Prepare contribution format income statements for May. (Round "Total percent" answers to 1 decimal place) Topper Sports, Incorporated Income Statement for May Deluxe % Amount % Pro Standard Amount Total Amount Amount % % Variable expenses Total vanable expenses 0 0 0 0 0.0 0 0 0 0 $ Oo s 0 0 0 S 0 00 Foxed expenses Total foxed expenses o lo S Assume that sales of the Standard racket increase by $23,600. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $23,600? Do not prepare income statements; use the incremental analysis approach in determining your answer. Standard Pro Effect on Net operating income

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