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Topper Sports, Incorporoted, produces high-quality sports equipment. The company's Racket Division manufactures three tennis reckets-the Standord, the Deluxe, and the Pro-that are widely used in
Topper Sports, Incorporoted, produces high-quality sports equipment. The company's Racket Division manufactures three tennis reckets-the Standord, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackers is given below: All sales are mode through the company's own retail outlets. The Racket Division has the following fixed costs: Soles, 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 Apral. 4. Would the break-even point be higher or lower with May's sales mix unan with April's sales mix? 5. Assume that sales of the Standard racket increase by $20.600. What would be the effect on net operating income? What would be the effect if Pro rachet sales increased by $20,600 ? Do not prepore income statements; use the incremental analysis epprooch in determining your
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