Topper Sports, Incorporated, produces high-quality sports equipment. The company's Recket Division manufactures three tennis rackets-the Standard,...
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Topper Sports, Incorporated, produces high-quality sports equipment. The company's Recket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro-that are widely used in amateur pley. Selected information on the rackets is given below: Selling price per racket Variable expenses per rackets Production Selling (55 of selling price) Standard $45.00 $100.00 $39.00 $3.25 145.00 42.00 5.00 50.00 7.25 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs Fixed production costs Advertising expence Administrative salaries Total Per Month $154,000 134,000 84,000 $372,000 Sales, in units, over the past two months have been as follows: April May Required: 2,000 Pro Total 1,000 5,000 8,000 ,000 1,000 3,000 12,000 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 $23,400. What would be the effect on net operating income? What would be t the effect if Pro racket sales increased by $23,400? 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 181 Req3 Req 4 Req S Prepare contribution format income statements for April. (Round "Total percent answers to 1 decimal place) Variable expenses: Total variable expenses Fixed expenses Total fixed expenses Topper Sports, Incorporated Income Statement for April Standard DU Pro Total Amount 9 Amount % Amount % Amount Req 18 > 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 May. (Round "Total percent" answers to 1 decimal place) Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Topper Sports, Incorporated Income Statement for May Standard Deluxe Pro Total Amount: % Amount % Amount % Amount % Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 3. Req 4 Req 5 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 Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 3 Req 4 Req 5 Would the break-even point be higher or lower with May's sales mix than with April's sales mix? Higher OLower < Req 3 Req 5 > Assume that sales of the Standard racket increase by $23,400. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $23,400? Do not prepare income statements; use the incremental analysis approach in determining your answer. Effect on Net operating income Standard Pro Topper Sports, Incorporated, produces high-quality sports equipment. The company's Recket Division manufactures three tennis rackets-the Standard, the Deluxe, and the Pro-that are widely used in amateur pley. Selected information on the rackets is given below: Selling price per racket Variable expenses per rackets Production Selling (55 of selling price) Standard $45.00 $100.00 $39.00 $3.25 145.00 42.00 5.00 50.00 7.25 All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs Fixed production costs Advertising expence Administrative salaries Total Per Month $154,000 134,000 84,000 $372,000 Sales, in units, over the past two months have been as follows: April May Required: 2,000 Pro Total 1,000 5,000 8,000 ,000 1,000 3,000 12,000 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 $23,400. What would be the effect on net operating income? What would be t the effect if Pro racket sales increased by $23,400? 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 181 Req3 Req 4 Req S Prepare contribution format income statements for April. (Round "Total percent answers to 1 decimal place) Variable expenses: Total variable expenses Fixed expenses Total fixed expenses Topper Sports, Incorporated Income Statement for April Standard DU Pro Total Amount 9 Amount % Amount % Amount Req 18 > 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 May. (Round "Total percent" answers to 1 decimal place) Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses Topper Sports, Incorporated Income Statement for May Standard Deluxe Pro Total Amount: % Amount % Amount % Amount % Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 3. Req 4 Req 5 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 Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 3 Req 4 Req 5 Would the break-even point be higher or lower with May's sales mix than with April's sales mix? Higher OLower < Req 3 Req 5 > Assume that sales of the Standard racket increase by $23,400. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $23,400? Do not prepare income statements; use the incremental analysis approach in determining your answer. Effect on Net operating income Standard Pro
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