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Case 1 Saved Help Save & Exit Submit Check my work 1 Topper Sports, Inc. 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: 80 points Skipped Standard $ 45.00 Deluxe $ 70.00 Pro $180.00 Selling price per racket Variable expenses per racket: Production Selling (54 of selling price) $ 27.00 $ 2.25 $ 35.00 $ 3.50 $36.00 $ 5.00 eBook All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Print Per Month $ 140,000 120,000 70,000 $ 330,000 Fixed production costs Advertising expense Administrative salaries Total References Sales, in units, over the past two months have been as follows: April May Standard Deluxe 2,000 1,000 8,000 1,000 Pro Total 5,000 8,000 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. Whether 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 $22,000. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $22,000? Do not prepare income statements; use the incremental analysis approach in determining your answer. BBB w Prev 1 of 1 Next >

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